Offshore Worries Persist - Yet NZD Rises

Offshore Worries Persist - Yet NZD Rises

Welcome to the August 2 edition of Tony Alexander's Weekly Overview

This is the first Thursday of the month so if you have the time feel free to click on the link below and let us know whether you feel the NZ economy will be in better or worse shape in a year’s time.

This week the Kiwi dollar has risen to near US 81 cents in response to hopes that strong words from the European Central Bank President regarding saving the Euro will be backed up by action. But given the increasingly bad economic data coming out of Europe some sort of break-up of the Euro looks probable so the wave of happiness which swept the world’s financial markets this week could easily prove temporary.

On the domestic front no data have been released to alter our view of some strength to the NZ economy but little chance of very rapid growth with restraint from the high NZ dollar plus worsening world growth.

For further commentary see www.tonyalexander.co.nz

Best regards

Tony Alexander
Chief Economist
www.tonyalexander.co.nz

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