The NZDUSD opens at 0.6295 (mid-rate) this morning

The NZDUSD opens at 0.6295 (mid-rate)this morning

The RBNZ yesterday morning cut the Official Cash Rate (OCR) by 0.25% to 2.75% as expected, and stated some further easing is possible. The NZ economy is growing at a 2% annual rate, and they see further weakness in the global economy.

After reporting a bigger than expected increase in first-time claims for U.S. unemployment benefits last week, the US Labour Department released a report overnight showing that U.S. initial jobless claims had fallen 275k in line with estimates in the week ended September 6th.

Wholesale inventories in the U.S. unexpectedly saw a modest decrease in the month of July, down 0.1%, and following a downwardly revised 0.7% increase in June.

French industrial production fell 0.8% in July from June, when it remained flat. It was expected to grow 0.2%. France's non-farm payroll employment rose 0.2% quarter-on-quarter in the second quarter, after showing no variations in the preceding quarter.

The Bank of England kept its record low interest rate unchanged in a split vote and judged it premature to conclude that overseas events, especially those in China, had a huge adverse impact on the British economy. Policymakers also unanimously voted to retain quantitative easing programme at GBP 375 billion.

UK House prices spiked 53% in August. That topped forecasts for an increase of 46% and was up sharply from 44% in July.

Global equity markets are down with the exception of the US which is up: Dow +0.28%, S&P 500 +0.35%, FTSE -1.18%, DAX -0.90%, CAC -1.23%, Nikkei -2.51%, Shanghai -1.41%.
Gold prices are trading at $1110 an ounce, WTI Crude Oil has regained 3.48% to be trading at $45.64 a barrel.

ENDS

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