Markets Today

BNZ Markets Today

Jason Wong -

Positive risk sentiment sees JPY and USD under pressure, while the NZD has made further gains overnight, adding to the move after stronger than expected GDP figures. US Treasury rates have consolidated around recent highs.

BNZ Markets Today

Jason Wong -

Against a backdrop of improved sentiment for emerging market currencies, the NZD and AUD continue to show signs of recovery, with both reaching their highest levels for the month. These moves come despite US rates tracking higher.

BNZ Markets Today

Nick Smyth -

Yesterday’s official announcement that the US would impose tariffs on $200b Chinese imports has been largely shrugged off by markets. US and Chinese equities have risen while the 10 year US Treasury yield broke above 3%, to its highest level since May. The NZD and AUD have outperformed against a risk-on backdrop.

BNZ Markets Today

Nick Smyth -

The week has started off with a slightly risk-off tone, with Chinese and US equities falling (the latter led by the tech sector). So far, the market appears to have put more weight on the likely cancellation of US-China trade talks than the lower 10% tariff rate that the WSJ reported Trump had opted for. Trump said an announcement on Chinese tariffs would come later this morning, after the market close. The USD reversed its gains from Friday and is trading towards the lower end of its recent trading range.

BNZ Markets Today

Nick Smyth -

On Friday, the US 10 year Treasury yield hit 3% for the first time since the start of August after another round of robust US economic data. The USD was stronger on the day, but remains contained within a broader range. Over the weekend the WSJ reported that President Trump would announce tariffs of 10%, lower than the originally planned 25%, on $200b of Chinese imports, likely either today or tomorrow. It’s possible that risk assets could bounce on the news of a lower tariff rate.

BNZ Markets Today

Nick Smyth -

US equities rose and US Treasury yields fell modestly after a lower than expected US core CPI release. The USD weakened after the CPI data too, although the NZD is not
much higher than this time yesterday. There was little new information from both the ECB and BoE meetings, but the Turkish central bank raised its one week repo rate by a whopping 625bps, which has helped support EM currencies.

BNZ Markets Today

Nick Smyth -

Press reports that US Treasury Secretary Steve Mnuchin had invited China to attend trade talks have given a sharp lift to the NZD and AUD. There wasn’t much reaction in
either equity or bond markets to the trade news though. US yields have drifted lower ahead of tonight’s US CPI release.

BNZ Markets Today

Nick Smyth -

US Treasury yields moved higher overnight, with the 10 year rate closing in on 3%. Second-tier US economic data remained robust and supportive of continued Fed tightening while US equities increased, boosting risk appetite. The NZD made a new low against the USD and sits just above 0.65.

BNZ Markets Today

Nicky Smyth -

The NZD and AUD fell sharply on Friday after a double whammy of stronger than expected US wage growth and President Trump’s latest threat that he could impose tariffs on all Chinese imports. There was no announcement on the $200b Chinese imports, although Trump said it could happen “very soon”. US Treasury yields moved sharply higher after the wage data, with the market pushing up Fed tightening expectations.

BNZ Markets Today

Jason Wong -

A risk-off mood has prevailed overnight, although market movements have been modest, as we await a possible announcement by President Trump of further tariffs and ahead of the key US employment report tonight. The NZD sits around 0.66 and UST rates are lower, with comments by the Fed’s vice chair Williams interpreted as dovish.

BNZ Markets Today

Jason Wong -

Market movements have been modest, but the NZD heads the leaderboard with broadly based gains, recovering after reaching a fresh low during local trading. US Treasury yields are unchanged.

BNZ Markets Today

Jason Wong -

USD strength across the board has seen the NZD and AUD reach fresh multi-year lows, alongside further weakness in emerging market currencies. Strong US ISM data has supported higher US Treasury rates

BNZ Markets Today

Jason Wong -

Markets are quiet with the US on holiday. NZD is hovering around the 0.66 mark while GBP is the weakest of the majors on various Brexit headlines.

BNZ Markets Today

Jason Wong -

Angst about trade deals dominated Friday trading, seeing safe-haven currencies and the USD outperform, while the AUD hit a fresh low. US equities and the 10-year Treasury
rate were little changed ahead of the long US weekend.

BNZ Markets Today

Jason Wong -

Weaker NZ business confidence data and another bout of emerging market currency weakness sees the NZD the weakest of the majors, with AUD and CAD underperforming as well. Global yields are lower, supported by a mild risk-off tone and softer German
inflation data.

BNZ Markets Today

Nick Smyth -

US equities moved higher again amid low volatility and positive underlying risk appetite sentiment. In currencies, the GBP strengthened after EU chief negotiator Michel Barnier said the EU was prepared to offer a special deal to the UK, although with the usual caveats. The AUD is the weakest currency over the past 24 hours after Westpac’s out-of-cycle mortgage rate hike.

BNZ Markets Today

Nick Smyth -

Market moves were reasonably modest overnight, although there is a lingering risk-on tone from yesterday’s tentative trade agreement between the US and Mexico. The USD was mixed, but the NZD has moved up towards resistance around 0.6725.

BNZ Markets Today

Nick Smyth -

The S&P500 and NASDAQ set new highs overnight after the US and Mexico said they had reached a trade understanding for a deal to replace NAFTA. The US dollar continued where it left off on Friday, weakening across the board overnight, while US Treasury yields were modestly higher. The NZD is up only slightly from Friday’s close.

BNZ Markets Today

Nick Smyth -

The S&P500 made a new record high on Friday and the US dollar fell across the board after Fed Chair Powell said there was no clear sign of inflation accelerating above 2%,
nor the economy overheating. While Powell said further gradual rate rises remained appropriate (i.e. Fed will likely hike another two times this year) Fed policy is likely to be
more data-dependent in 2019. Meanwhile, the CNY rose sharply after the PBOC reintroduced the counter-cyclical factor for the CNY fix, a tool for dampening volatility in the currency. The market’s dovish take on Powell’s speech and the CNY appreciation have boosted the NZD back to near 0.67.

BNZ Markets Today

Jason Wong -

The USD is broadly stronger, recovering some of its losses seen earlier this week. The AUD is the weakest of the majors, with political risk overhanging the currency. Equity markets are flat and UST yields are little changed.

BNZ Markets Today

Jason Wong -

There has been little change in currencies overnight. Market reaction to yesterday’s US political drama has been modest and trading conditions have been light. The NZD has spent the last 24 hours hovering around 0.6700, while US equities and bond markets show little movement.

BNZ Markets Today

Jason Wong -

Stronger risk appetite sees the S&P500 reaching a record high and the NZD touching 0.67 amidst a weaker USD backdrop. Global rates have drifted higher in this environment.

BNZ Markets Today

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Commodity currencies outperformed on Friday while the USD was the weakest of the majors, supported by a more positive outlook for US-China trade tensions. The rates market was little changed.

BNZ Markets Today

Nick Smyth -

Reports yesterday that the US and China would resume trade talks – albeit low level ones – has boosted risk appetite. US equities reversed yesterday’s falls, helped also by strong corporate earnings, while commodity prices and most EM currencies have also risen. Amidst a sharp rise in the offshore Chinese Renminbi, the NZD and AUD are amongst the better performing currencies, although the moves have been pretty modest.

BNZ Markets Today

Nick Smyth -

There is a general risk-off tone to markets over the past 24 hours, with emerging markets remaining under pressure, despite a further recovery in the Turkish lira. There has been some spill-over via lower global equity markets, commodity prices, and bond yields. The USD has continued to strengthen, although mainly against emerging market currencies. The NZD made a fresh low overnight, but hasn’t been overly affected thus far by the pick-up in risk aversion.

BNZ Markets Today

Nick Smyth -

The USD has continued to push higher overnight, with the Bloomberg dollar index making a new high for the year. The Turkish lira appreciated and this helped support a general recovery in risk appetite.

BNZ Markets Today

Nick Smyth -

Turkey remains in the headlines after more volatility in the lira over the past 24 hours, but there has been limited contagion so far outside of other emerging market markets. Developed market equities are modestly lower overnight and core bond yields are little changed. The USD is stronger against emerging market currencies but is little changed against G10 currencies, including the NZD.

BNZ Markets Today

Nick Smyth -

The worsening macroeconomic situation in Turkey escalated into an all-out currency crisis on Friday night, with the Lira falling 24% at one point. This triggered weakness in other emerging market currencies, broad-based strength in the US dollar and a pick-up in risk aversion. The NZD, which was already on the back foot after the MPS, has fallen further to below 0.66. NZ rates experienced another substantial fall on Friday as the market continued to digest last week’s MPS and the subsequent comments from Assistant Governor McDermott.

BNZ Markets Today

Jason Wong -

Market volatility remains suppressed but there has been some mild outperformance of commodity currencies and the yen (an unusual combination) for the day, while GBP remains unloved. US equities are flat and the global rates market shows little change as well.

BNZ Markets Today

Jason Wong -

A more positive day for the Chinese yuan dragged the AUD higher but the NZD has been left behind and is flat, even with higher risk appetite, with the S&P500 approaching a fresh high and slightly higher global bond yields.

BNZ Markets Today

Jason Wong -

Currency movements were modest on Friday, although the AUD seemed to be a beneficiary of the PBoC’s move to rein in the yuan’s depreciation. US rates were slightly lower following the key employment report.

BNZ Markets Today

Jason Wong -

Increased focus on trade tensions sees a weaker NZD, while GBP has also underperformed despite the BoE hiking rates. UST yields have slipped back below the 3%
mark.

BNZ Markets Today

Jason Wong -

Currency movements overnight have been modest, with the yen slightly stronger on slightly lower risk sentiment. The NZD and AUD have sustained the small losses seen during local trading hours yesterday. Global rates are higher, with some spillover evident from higher JGB yields.

BNZ Markets Today

Jason Wong -

On an action-packed day, market movements have been modest, with the AUD and CAD supported overnight and the NZD dragging the chain, while JPY has remained soft after the more dovish BoJ yesterday. The latter has also kept global bond rates in check.

BNZ Markets Today

Jason Wong -

The USD is weaker across the board as the new week begins, supporting a lift in the NZD towards the top of its recent range. Global rates are higher, with some nervousness ahead of today’s widely anticipated BoJ meeting.

BNZ Markets Today

Nick Smyth -

It was a reasonably quiet end to the week on Friday, with the exception of a sharp decline in US tech stocks. US Q2 GDP was marginally below expectations, which triggered a slight decline in Treasury yields and the US dollar. A big week awaits – the BoJ, BoE and Fed all meet, while payrolls is released on Friday. The focus locally will centre on the labour market report on Wednesday.

BNZ Markets Today

Nick Smyth -

It’s been a busy past 24 hours. Global equity markets got a boost from Trump and Juncker’s agreement to hold off on tariffs but the positive sentiment was partially dented
by a 20% fall in Facebook shares after its earnings results. The EUR fell after Draghi confirmed that the ECB wouldn’t raise rates until after next summer. The NZD has moved
lower in sympathy with the EUR and remains firmly rangebound for now.

BNZ Markets Today

Nick SMyth -

US equities moved higher overnight, helped in part by some conciliatory comments from President Trump at a press conference with EU President Juncker. The USD weakened across the board, but remains within recent trading ranges. Against a backdrop of positive risk sentiment, the NZD has made further modest gains.

BNZ Markets Today

Nick Smyth -

Global equities moved higher overnight, supported by more positive earnings results and China’s recent policy easing measures. Bond yields stabilized, while FX moves were also modest. EU President Juncker meets Trump tonight to discuss trade.

BNZ Markets Today

Nick Smyth -

Global yields moved higher again overnight, as speculation continued to mount ahead of the Bank of Japan monetary policy meeting next week. The PBOC injected liquidity via its MLF facility, and the depreciation in the CNY contributed to a lower AUD and NZD.

BNZ Markets Today

Nick Smyth -

President Trump was at it again on Friday night, blaming China and the EU for manipulating their currencies and interest rates and again questioning the Fed for raising
rates. The USD fell sharply, extending the moves from Thursday after Trump’s previous round of comments. The NZD has moved up above 0.68, helped by the broadbased USD weakness and a rebound in commodities.

BNZ Markets Today

Nick Smyth -

The US dollar index made a fresh year-to-date high overnight, before reversing sharply as President Trump said he wasn’t happy about the Fed raising rates, which he said put the US at a disadvantage. The CNY made a new low for the year after China took further steps to ease policy. The NZD moved lower overnight, in sympathy with the moves in the CNY.

BNZ Markets Today

Nick Smyth -

It was another quiet night across markets with volatility remaining very subdued. There wasn’t much new from Fed Chair Powell’s testimony to Congress but US equities and the 10 year US bond yield are slightly higher.

BNZ Markets Today

Nick Smyth -

In his semi-annual testimony to Senate, Chair Powell said that the Fed intends to stick to its gradual rate rise path “for now”. US equities are higher on the day and the USD stronger but bond yields are little changed. Politics continue to weigh on the GBP, although the Government narrowly avoided defeat on a pro-EU amendment to the
Trade bill. The NZD is the top performing currency over the past 24 hours after a surprise increase in the RBNZ’s Sectoral Factor Model of underlying inflation.

BNZ Markets Today

Nick Smyth -

It was a reasonably quiet end to the week, with the S&P500 edging out a small gain and closing at its highest level since February. Ahead of the NZ CPI release tomorrow, the NZD was the weakest performing G10 currency. Offshore, there will be focus this week on Fed Chair Powell’s semi-annual testimony, US corporate earnings season and Chinese activity data.

BNZ Markets Today

Nick Smyth -

Risk markets have recovered overnight as China didn’t
immediately retaliate to the President Trump’s latest
threat to impose tariffs on $200b worth of imports.
Against a backdrop of better risk sentiment, the NZD has
bounced a little, but it remains near multi-year lows.

BNZ Markets Today

Doug Steel -

A bit of news over the past 24 hours. Shortly after we hit
the send button yesterday morning, President Trump
continued with plans to impose tariffs on an additional
$200b of Chinese goods by releasing a list of targeted
products. The US Trade Representative’s office said the
10% tariffs could take effect after consultations end on 30
August. If these proposed tariffs proceed, this would see
duties implemented by the Trump administration on China
cover about half of all US imports from that country. It is
another escalation in trade tensions. China condemned
the move and late yesterday afternoon said it would be
‘forced to retaliate to new US tariffs’. These developments
punctured the previously prevailing positive risk
sentiment.

BNZ Markets Today

Jason Wong -

The new week has begun with a further recovery in risk appetite amidst light trading conditions. The AUD has modestly outperformed, while trading in GBP has been whippy, driven by political forces.

BNZ Markets Today

Jason Wong -

The USD was broadly softer after the White House went
ahead with further tariffs on Chinese imports and it
weakened further after the US employment report. Risk
appetite was higher, with the market unperturbed by the
tariffs and China’s retaliatory response, which were well
anticipated. The NZD closed the week on a strong note
and modestly higher on all key crosses.

BNZ Markets Today

Jason Wong -

Trading conditions remain lighter than usual following the
US holiday, with only modest movements in currency and
bond markets against a backdrop of stronger equity
markets.

BNZ Markets Today

Jason Wong -

The US Independence Day holiday has meant quiet trading conditions and small movements in asset prices. The NZD has consolidated around the 0.6760 mark.

BNZ Markets Today

Jason Wong -

The NZD has recovered, helped by a verbal intervention by
the PBoC to help support the yuan, on a day where US
equities and bond yields have moved lower.

BNZ Markets Today

Jason Wong -

The beginning of the third quarter has got off to a rough start, with falling risk appetite seeing weaker equity markets and the NZD and AUD diving to fresh lows. Despite the negative risk tone, global bond yields remain steady.

BNZ Markets Today

Jason Wong -

The USD was broadly weak on Friday, reflecting a mixture of news and position covering ahead of month-end. This saw the NZD recover a little from a fresh 2-year low, although much of the action was in local trading hours. There remained little action in global bond markets, while NZ rates fell further.

BNZ Markets Today

Jason Wong -

The NZD has nudged down further in overnight trading,
sustaining further losses since the RBNZ’s OCR Review
yesterday, while CAD is a notable outperformer. US
equities and US 10-year yields are higher.

BNZ Markets Today

Jason Wong -

The NZD has been one of the worst performers over the past 24 hours, although much of the damage was done during local trading hours, with only a small further fall overnight to just below 0.68. Risk appetite is weaker, with US equities slightly lower and UST10s down 5bps.

BNZ Markets Today

Jason Wong -

US equities are modestly higher after yesterday’s chunky
sell-off, led by the energy sector on higher oil prices.
Against a backdrop of a broadly stronger USD, the NZD
has underperformed, while rates markets have barely
moved.

BNZ Markets Today

Jason Wong -

Global equity markets have been rattled by focus on
escalating US-China trade tensions but there has been
limited spillover for currencies and bond markets.

BNZ Markets Today

Jason Wong -

The NZD and AUD ended the week on a positive note on a day where the USD struggled to perform against the majors. Rates were little changed for the day.