INDEPENDENT NEWS

XE Morning Update NZ

Published: Mon 13 Jan 2020 12:13 PM
The NZDUSD opens at 0.6634 (mid-rate) this morning.
Currency markets will start the week with a cautious tone after reports overnight of a further rocket attack on an Air base north of Baghdad in Iraq. There are reports of 4 Iraqi soldiers being wounded but no reports so far of any US casualties. Also over the weekend the US threatened to seize the Central Bank account of Iraq if Iraq kicked their military out of the country. This is the first time the US have used the Banking system as a weapon of sorts and could lead to more business being done in Euro's rather than US Dollars. Iraq holds about USD 3.0 Billion in their US account.
Friday night saw the release of the monthly US jobs report which showed 145k jobs added versus expectations of 160k. The unemployment rate remained the same at 3.5%, however wage growth was slower at just +0.1% m/m below the +0.3% m/m forecast. This will create a dilemma for the US Federal Reserve who are wanting to see inflation move back up above their 2.0% target level.
In the UK some Bank of England Board members have been talking about the prospect of an interest rate cut to help offset any uncertainty caused by the looming Brexit decision which should take effect on January 31st. The UK will then have until the end of the year to agree a trade deal with the EU, which is a tight time frame given they have taken over 3.5 years to agree Brexit itself.
This week on the data front the main points will be China's trade data due Tuesday followed by US Consumer Price inflation Tuesday night and then US retail Sales on Thursday night.
Global equity markets closed mostly lower on Friday, - Dow -0.46%, S 500 -0.29%, FTSE -0.14%, DAX -0.09%, CAC -0.09%, Nikkei +0.47%, Shanghai -0.08%.
Gold closed out the week at $1,560.10 an ounce while WTI Crude Oil had it's worst week since July, closing at $59.04 a barrel after tensions appeared to be easing in the Middle East.

Next in Business, Science, and Tech

COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy
By: Statistics New Zealand
Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate
By: Joint Press Release
Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea
By: Ministry For Primary Industries
New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand
By: IDC New Zealand Ltd
Mediaworks Reaches Agreement To Sell TV Operations To Discovery, Inc.
By: Mediaworks
Public Transport Distancing Requirements Relaxed
By: Ministry of Health
New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs
By: New Zealand Hemp Industries Association Inc
One In 14 Employed People Report High Risk Of Losing Jobs
By: Statistics New Zealand
ASB Quarterly Economic Forecast Shows NZ Economy Doing Better Than Expected, But Challenges Remain
By: ASB
Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea
By: SAFE
FMA Releases Report Into Active And Passive Fund Management
By: Financial Markets Authority
New Zealand In Deepest Recession In Living Memory
By: New Zealand National Party
Record Transport Investment To Help Economic Recovery And Save Lives
By: New Zealand Government
Trucks And Roads The Key To Economic Survival
By: Road Transport Forum
Building Confidence Crucial Amid An Uncertain Economic Recovery, Says OECD
By: OECD
View as: DESKTOP | MOBILE © Scoop Media