Monday June 13, 2005 - 21:44:53 GMT
Share This Story
Westpac Institutional Bank - www.westpac.co.nz
Forex: Westpac Institutional Bank Morning Report
Westpac Institutional Bank Morning Report
New Zealand Dollar: NZD pressured by USD strength
The NZD opened yesterday's local session on a softer note as US dollar strength against other major currencies pressured the currency. The market received some respite, however, following the release of retail sales data for April, which showed a seasonally adjusted increase of 0.7%. The currency improved to close the day towards intraday highs at 0.7085. Weakness in NZD/USD re-emerged during the offshore session and once again the currency was marked down to lows of 0.7032. The market opens this morning at 0.7050.
Australian Dollar: AUD lower after Queen's Birthday Holiday
With trade in the local session limited as Australians enjoyed Queen's Birthday Holiday, the AUD suffered early losses as the USD enjoyed across the board gains. The currency managed to hold above 0.7600, however, and improved into the local close to establish a 0.7600 - 0.7638 range on the day. Further euro losses in the offshore session once again dragged the AUD lower and the market opens this morning at 0.7610.
Major Currencies: US dollar plows ahead
The US dollar reached a nine-month high against the euro and an eight-month high against the Japanese yen and Sterling on Monday, extending its gains from late last week. Yesterday's move was a result of last week's US data and Alan Greenspan's testimony, both implying more US interest rate hikes are on the horizon. This is a stark contrast to conditions in Europe where there are concerns about the political integration of the eurozone, and where interest rates are firmly on hold. The euro
fell to a low of 1.2028 yesterday but found some late demand as it approached the critical support level of 1.2000 and closed slightly above 1.2100. In Japan, data released yesterday indicated the economy did not grow as rapidly as initial reports suggested. The USD rallied strongly against the yen reaching 109.62, a level not seen since Oct 04. Sterling
traded lower throughout Monday and fell to 1.8008, an eight-month low.
UK producer prices mixed.
May input prices were on the strong side at 0.3% m/m, pushing the annual rate up to 7.8%. In contrast, output prices were softer than expected, falling 0.2% m/m to be up 2.7% y/y (down from 3.2%). Implicit in the result is that manufacturers, whilst facing cost pressures, are being hampered in their ability to pass on the costs. The core output measure remained steady at 2.6% y/y, a further indication that the Bank of England won't be unduly concerned by the outcome.
UK house price growth eases.
The April house price measure from the Office of the Deputy Prime Minister showed that annual house price growth slipped to 6.9% in April, down sharply from 12.6% in March now at its lowest level since the end of 2001.
Country Release Last Forecast
NZ May Food Price Index -0.8% 0.5%
Aust May NAB Business Survey 6 n/f
RBA Governor Speaks 1pm
US May Producer Price Index 0.6% -0.3%
May Core PPI 0.3% 0.2%
May Retail Sales 1.4% -0.3%
May Retail Sales ex auto 1.1% -0.1%
Jpn Bank of Japan Meeting
UK May CPI %yr 1.9% 1.9%
Can Apr Manufacturing Shipments -2.4% 0.5%
Latest Research papers/Publication
NZ Weekly Forex Outlook (13 June)
NZ Q1 Terms of Trade Review (10 June)
NZ Weekly Interest Rate Wrap-up (10 June)
RBNZ June MPS Review (9 June)
Taking stock - the sequel (8 June)
RBNZ Hot Points (7 June)
NZ Weekly Forex Outlook (7 June)
NZ Agribiz June 2005 (7 June)
Taxation - who pays and how much? (2 June)
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.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."