Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
There were no changes today.
TODAY'S DEPOSIT RATE CHANGES
There were no changes here today either.
WE WILL NEED TO ADAPT CLEVERLY
The Parliamentary Commissioner for the Environment today issued a Report on rising sea levels. She said a rising sea will be with us for a long time to come – one way or another we will have to adapt. But how high and how fast the water rises will be influenced by the speed at which the world – including New Zealand – reduces greenhouse gas emissions over the coming decades. The insurance implications will be large if nothing else.
SAVING LESS
Data out today in the StatsNZ Household Economic Survey showed that incomes rose +3.5% over the past year. (It also showed that spending rose faster!)
A BIGGER DEFICIT
The October trade deficit came in much larger than most were expecting. It is the time of the year when these deficits are usually large, and at least it was not as big as September's. From here on out we should start reverting towards a surplus again. Somewhat surprisingly the data had no impact at all on the currency.
RBNZ HOLDS FIRE
Speaking of currency, there was data out from the RBNZ which showed they made no intervention in fx markets in October.
UP AND DOWN
Online sales took a bit of a spurt in October, BNZ reported today. The launch of the iPhone6 had a noticeable effect. Countering that is the withering of the 'daily deals' category.
WHOLESALE RATES
Swap rates fell and flattened again today. They were up +1 bp for one year, down -2 bps for 5 yrs and -3 bps for 10 yrs. This restores the flatter rate curve we reported yesterday after some of it backed off late yesterday. The 90 day bank bill rate was unchanged at 3.67%.
OUR CURRENCY HOLDS
Check our real-time charts here. The NZ dollar rose against the greenback which is impressive given the unexpectedly large trade deficit in October ... and rose again against the Aussie. It is now at 78.8 USc, at 92 AUc, and the TWI is at 78.4.
You can now see an animation of this chart. Click on it, or click here.
Daily exchange rates
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6 Comments
"Somewhat surprisingly the data had no impact at all on the currency."
John Key did seem last week to have given the Chinese, and any other Japanese or German or other money printers observing the exchange, free licence to buy as much of New Zealand as they felt the desire to do. In that context the surprise is not all that great. Carry on the party for another three years people; just expect it to be a long hangover for the next generation of NZers.
I can understand the sentiment, but am not sure he's vindictive in any way. Actually I think he's just a little too populist for my liking- giving New Zealanders the easy wins of short term cheap foreign holidays and a very property based economy at the cost of building a more robust long term trading economy. That bit could be a harder sell politically.
Ive never seen anything to indicate vindictive to NZ, example? Be that as it may, what did he actually produce in his entire career that was real? ie a real good? instead he seems to have been a very effective financial parasite but not caring who he made money off. Yet 51% like him enough, how shallow we are.
regards
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