Here's my summary of the key news overnight in 90 seconds at 9 am, including news of big American job growth.
This Friday we get the important American Non-farm Payrolls report. A lot of market sentiment hangs on that data release. But today we got the precursor ADP Employment Report, and that was very strong and better than expected. That indicated jobs growth of 281,000 in June, the highest gain in 18 months. Now markets will want to see a similar result on Friday.
This data came after it was reported that factory orders in the US rose and overall activity steady, in the latest official survey.
Janet Yellen was speaking overnight and it is becoming clear that the focus of the US Fed under her leadership is focused less on preventing Wall Street volatility than on making sure that it doesn’t bring economic disaster. She will be 'happy' with a bumpy ride so long as disasters are prevented.
In Australia, their trade deficit ballooned in May as commodity prices weakened sharply. This was despite export volumes holding up quite well. Their currency weakened on the data release. You would think something similar would happen here with yesterday's dairy price falls, but it hasn't - yet.
UST 10yr bond yields jumped a lot in New York today and are now at 2.62%. The oil price is down however, again slipping more on the Brent benchmark than the US which is now at US$104/barrel. And this is despite a strong summer 'driving season'. Gold is up at US$1,329/oz.
We start today with the NZ dollar slightly higher overall at 87.7 USc, and up to 92.9 AUc on the weak Aussie trade data. The TWI is now at 81.3. Surprisingly there has been no currency market reaction to yesterday's sharp dairy price falls.
If you want to catch up with all the changes on yesterday we have an update here.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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