Global Themes
NZD
US Government in stalemate shutdown
Pressures emerging as they fail to reach agreement on the Budget
President Trump and his Republicans are disputing with the Democrats over spending for federal operations in a short term fix for the Budget that has expired on Friday. There are also other hot topic debates around immigration. For now the financial markets reaction has been muted with US stock markets remaining unchanged. If a result is not reached quickly then we could see some volatility later this week.
US government shutdown's are not entirely uncommon, with the last one occurring in 2013. That one resulted in a two week shutdown where around 850,000 federal jobs were furloughed.
Kiwi still in importer friendly zone
NZD/USD sitting around .7300
The kiwi has started the year with a bang, up nearly 7% across most of of its major counterparts. Importers that were repricing for 2018 have been given an opportunity to lock in some potential foreign exchange gains relative to renewed costing rates.
NZD/JPY remains above the 80.00 mark but is failing to sustain any moves higher over 81.00, something to be wary of.
NZ Inflation local focus this week
Data due out Thursday at 10.45 am
Outside of the local inflation data we have UK employment data out Wednesday evening and US GDP at the end of the week.
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