Gold surges another 1.8% overnight. The Reserve Bank of New Zealand cuts its cash rate 50 basis points, which sends the Aussie dollar higher against the Kiwi.
In our Deep-Dive interview, ANZ New Zealand Chief Economist Sharon Zollner looks at what was behind the RBNZ’s large cut.
5 things to know in 5 minutes:
Gold continued its rally overnight, up another 1.8% at $4,079 at 4am Sydney/Melbourne time. ANZ Commodities Strategist Soni Kumari says its up over 50% this year. That’s the strongest annual surge since 1979.
The Reserve Bank of New Zealand cut its Official Cash Rate 50 basis points to 2.50% yesterday, and signalled it was prepared to go further if needed. ANZ New Zealand Chief Economist Sharon Zollner says the move looks to be a front-loading of cuts the RBNZ was set to make over the next few months.
The oversized cut sent the Kiwi dollar tumbling, with the Aussie rising up above the NZ$1.14 mark during the day. At 4am Sydney/Melbourne time the cross was at NZ$1.139. ANZ FX Strategist Felix Ryan says the Aussie is likely to dominate in the short term.
Japan’s real wages fell for the eighth straight month from a year ago. Felix says that came after nominal wage growth was its slowest in three months.
The Bank of Thailand unexpectedly held its key rate at 1.5% yesterday against forecasts for a cut. ANZ Economist Krystal Tan says the pause came despite the central bank lowering its growth and inflation forecasts.
Cheers,
Bernard.
PS: Catch you tomorrow with more on the US jobs market and what it means for the Fed.
