BNZ Weekly Overview

Welcome to the November 4 issue of the BNZ Weekly Overview

This week we are once again running our monthly survey, so if time permits please click on the URL below and let us know if you think the economy will get better or worse over the coming year. In addition let us know how things are in your industry at the moment specifying what that industry is. Results will be released early next week.

http://survey.usuite.com/survey/7f801dd05f3742619b046cc119c15106.sur

This week the NZ dollar has breezed ahead four cents from last Thursday to lie near US 78.5 cents. The sharp gain has been driven by the increasing supply of USDs in the market courtesy of the Fed’s new quantitative easing measures, NZ export commodity prices rising to a record average level, and positive labour market data this morning including a 1% rise in job numbers.

Looking ahead the chances are the NZD will drift higher and given some of the data recently along with increasing long term borrowing by corporates in NZ we have probably seen the lows for fixed rates this year and rises are more likely than falls from here on.

Tony Alexander Chief Economist

© Scoop Media