Wednesday June 8, 2005 - 22:13:10 GMT
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Westpac Institutional Bank - www.westpac.co.nz
Forex: Westpac Institutional Bank Morning Report
Westpac Institutional Bank Morning Report
New Zealand Dollar: NZD holds new gains
After Tuesday evening's new lease of life, the NZD seemed happy to hold its gains during Wednesday's local session. The currency traded a tight 28 point range during the day and managed to reach a high of 0.7166. Data released on the day consisted of Q1 value of building work and the series rebounded 6.2% from 2005Q4. Residential work increased over the quarter, after falling in the second half of last year with non-residential work also posting an increase. The offshore session saw the NZD stretch itself a little more, posting an intraday high of 0.7172 before settling back around support at 0.7140. Technical selling early this morning saw the currency lose ground in tandem with the euro and the NZD opens softer this morning around 0.7110. The market now awaits the RBNZ's MPS statement at 9am this morning.
Australian Dollar: RBA leaves monetary policy unchanged
The AUD opened around 0.7690 yesterday, a level not seen since mid May. However the currency slowly weakened during the morning and the AUD was unable to sustain moves above 0.7700. ABS housing data for April rose 0.6% and the RBA left monetary policy unchanged which was as expected. The AUD lost ground on its crosses; the most notable being AUD/NZD as the market expects the RBNZ to remain hawkish at today's MPS. The AUD failed to post further gains during the offshore session and came under pressure early this morning as technically driven trade in the euro pushed AUD/USD lower. The currency opens around 0.7645 this morning.
Major Currencies: Dollar gains on technical trading
After a quiet day yesterday the US dollar gained ground in technically driven trading overnight as euro and Sterling both fell after touching key resistance levels. The euro was quickly sold after edging its way up to 1.2350, eventually finding support at 1.2220. Sterling followed the euro for much of the session, making a high of 1.8404 before giving up all of the days gains, and opens this morning around the 1.8230 level. Traders now look to Fed Chairman Alan Greenspan's speech to Congress tonight for further clues to currency direction. In relatively quiet Asian trading the dollar gained slightly against the JPY overnight and opens this morning around 107.30
US wholesale inventories rise 0.8% in April.
A stronger than expected rise, with March revised up from 0.4% to 0.6%. Non-durables, predominantly energy, explained much of the gain.
Canadian housing starts fell 5.5% in May,
reversing their May gain. The fall was entirely due to an 11% dip in multiple dwelling starts; single family and rural starts were essentially unchanged.
Country Release Last Forecast
NZ RBNZ Monetary Policy Statement 6.75% 6.75%
Aust May Employment chg 6.9k -10k
May Unemployment Rate 5.1% 5.2%
US Initial Jobless Claims w/e 4/6 350k 340k
Fed Chair Greenspan Testimony
Jpn Apr Current Account ₯bn 1373 1385
May Consumer Confidence 47.4 47.4
Eur Jun ECB Monthly Report
UK Apr Industrial Production -1.2% 0.2%
Apr Trade Deficit £bn -4.4 -4.9
BoE Repo Rate Decision 4.75% 4.75%
Can Apr New House Price 0.4% 0.3%
Latest Research papers/Publication
Taking stock - the sequel (8 June)
RBNZ Hot Points (7 June)
NZ Weekly Forex Outlook (7 June)
NZ Agribiz June 2005 (7 June)
RBNZ June MPS Preview (3 June)
NZD: Testing investor enthusiasm (3 June)
Taxation - who pays and how much? (2 June)
Warning shot for the RBNZ (31 May)
NZ Weekly Forex Outlook (30 May)
NZ Weekly Interest Rate Wrap-up (30 May)
What are markets telling us? (27 May)
These papers/publications are available on Online Research on
Westpac Institutional Banks website (www.wib.westpac.co.nz)
Westpac Banking Corporation ABN 33 007 457 141 incorporated in Australia (NZ division). Information current as at 24 May 2005. All customers please note that this information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs. Australian customers can obtain Westpac's financial services guide by calling +612 9284 8372, visiting www.westpac.com.au or visiting any Westpac Branch. The information may contain material provided directly by third parties, and while such material is published with permission, Westpac accepts no responsibility for the accuracy or completeness of any such material. Except where contrary to law, Westpac intends by this notice to exclude liability for the information. The information is subject to change without notice and Westpac is under no obligation to update the information or correct any inaccuracy which may become apparent at a later date. Westpac Banking Corporation is regulated for the conduct of investment business in the United Kingdom by the Financial Services Authority. © 2004 Westpac Banking Corporation. Past performance is not a reliable indicator of future performance. The forecasts given in this document are predictive in character. Whilst every effort has been taken to ensure that the assumptions on which the forecasts are based are reasonable, the forecasts may be affected by incorrect assumptions or by known or unknown risks and uncertainties. The ultimate outcomes may differ substantially from these forecasts.
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