R*C*SS**N Can I Buy A Vowel?
New Zealand: NZD/USD Past 5 days
International: EUR/USD Past 5 days
Today's commentary
The NZD remained softer yesterday after the release of a gloomy business survey, and on the back of a stronger USD.
The NZ Institute of Economic Research's Quarterly Survey of Business Opinion (QSBO) showed businesses were the most pessimistic about their own outlook for 26 years, and a host of other negative indicators. The institute said the survey pointed to negative economic activity for three quarters, with a recession technically two consecutive quarters of decline.
The USD rose a touch against the Euro, supported by a drop in oil prices overnight, but its gains were limited by renewed credit worries. Some analysts believe that if the Fed actually extends the duration of its lending facility, then the US central bank may not have to raise interest rates this year. Still some think liquidity problems and inflation concerns are two separate issues and believes that the Fed is still on track to raise rates in September.
Also a steep drop in US pending home sales index for May had a brief but negative impact on the dollar, suggesting that the housing market is still far from recovery. Meanwhile markets are still watching the G8 meeting in Japan for any comments on the dollar's weakness.
Upcoming Announcements
- 9 July 2008: AU Housing finance
- 9 July 2008: UK Total trade balance
- 9 July 2008: EZ GDP
- 10 July 2008: NZ Business PMI Index
- 10 July 2008: UK BOE rate annoucement
|
