NZ dollar rides higher on Powell's dovish testimony

FedWatch expectations for September 18

Hong Kong's Hang Seng jumped 1.2% to 28,539.74 while the Shanghai Composite index added 0.3% to 2,924.85.

Federal Reserve officials in fact marked down their estimate of the longer-run policy rate to 2.5 per cent in June, from 2.8 per cent in March. Shares also rose in Taiwan and Southeast Asia.

"Local equity markets are reveling in the best of both worlds this morning as local investors love nothing more than lower USA interest rates and a weaker US dollar", Stephen Innes of Vanguard Markets said in a commentary.

The Wall Street Journal reported that "the S&P 500 and the Nasdaq Composite touched all-time highs, with the S&P briefly eclipsing the 3000 level for the first time" in intraday trading before subsiding ahead of the close.

Federal Reserve chairman Jerome Powell said "uncertainties about the outlook have increased in recent months". "Instead, these central banks move at a more glacial pace...if the Fed is going to get involved in trade wars, then it is highly likely that it will do so along the interest rate route".

ASB senior economist Mark Smith also picked annual inflation to "tick up" to 1.7%, and core inflation measures were expected to be clustered around, or slightly below, 2% year on year.

The Dow Jones Industrial Average gained 0.3% to 26,860.20, while the Nasdaq climbed 0.7% to 8,202.53, a record.

The Russell 2000 index of smaller company stocks rebounded from a brief slide, gaining 0.2% to 1,565.05. "I think trade uncertainty is going to slow down global growth and that will feed back into the USA economy". Meanwhile, inflation has fallen farther from the Fed's target.

Trump has criticized Powell and his colleagues on a regular basis for nearly a full year - first calling on the Fed to stop, and then to reverse, its 2018 interest-rate increases. Bullard repeated his call for an interest rate cut, saying the Fed needs to nudge inflation expectations higher.

Princess Charlotte Looks Exactly Like a Young Queen Elizabeth in New Photos
Hill agreed, saying, "I imagine that people were concerned that she was not cradling the baby's head adequately". She wasn't there as the Duchess but as a pal. 'I respect Meghan Markle's hustle and I respect her game.

A quarter-point reduction on a $30,000 home equity line of credit would shave the monthly payment by $6.25, McBride says.

Trump has long insisted lower rates will help the US economy grow even faster.as he prepares to try and win re-election in 2020.

Powell is due to appear before the Senate Banking Committee on Thursday.

Inflation data may continue to attract attention on Friday, as the Labor Department is scheduled to release its report on producer prices in June.

See live rates for the NZ-US $ below. While trade tensions have eased, the outcome of talks with China remains uncertain, and if they break down, the increased tariffs that follow could damage the economy.

Eric Winograd, senior USA economist at Alliance Bernstein, noted that both vehicles and apparel "had been negative for the last few months and so the bounce this month is more likely payback for previous weakness rather than the start of a new trend".

Brent crude oil, the global standard, added 15 cents to $67.16 per barrel.

The Japanese yen and the euro were near flat against the dollar.

Related News:



Most liked

Arsenal appoint Edu as technical director
And, according to The Mirror , Arsenal have been presented with the chance to sign Diaz this summer for just £18million. But without more investment in the transfer budget, it is hard to imagine Arsenal landing the men they want this summer.

Until Dawn developer’s The Dark Pictures Anthology has eight planned games
Bandai Namco recently revealed that Man of Medan will have two different multiplayer modes in addition to its single-player mode. Two players join forces as they tackle the mystery surrounding a mysterious ship, inspired by a true life event .

Jeremy Corbyn under fire from Tom Watson over handling of anti-Semitism
Labour, which has been braced for the accusations, wrote to BBC director-general Lord Hall to complain ahead of the broadcast . Corbyn and his team", said CAA chief executive Gideon Falter. "Whether he himself is an anti-Semite or not is an irrelevance".

Kanye West wants to build 'Star Wars'-inspired low-income housing
West is personally involved in the project, overseeing a team that is putting together the designs for the low cost homes. While his ideas seem far-fetched and even insane to some, it seems that Kanye's creative process has brought him success.

Sugary Soda, Juice Tied to Increased Cancer Risk
These adults were 79-percent female and 21-percent male with an average age of 42 when they were added to the study. The authors said the study is observational, meaning the group can not state sugars cause cancer .

A Telstra Outage Has Caused Huge Technical Issues Across the Nation
A huge Telstra outage has taken out ATMs and EFTPOS machines around the country, potentially affecting thousands of businesses. Customers had complained to CBA via social media that their EFTPOS machines were displaying error messages.

Tucker Carslon, Rep. Ilhan Omar Feud Over Primetime Remarks
He also suggested to viewers that "maybe we are importing people from places who are simply antithetical to ours". Omar has not held back when talking about the aspects of the country she sees as needing improvement.

Chris Woakes hails 'incredible' England after hosts power into World Cup final
England took just 32.1 overs to reach their victory target and book their final date with New Zealand at Lord's on Sunday. Morgan struck a boundary to seal the win and move England to 226-2 after Australia was 223 all out in 49 overs.

Bruno Fernandes meets with agent to discuss Manchester United move?
But, Correio de Manha suggest that the Premier League heavyweights are yet to present a formal bid for the Portuguese worldwide . The Portuguese is believed to be one of Ole Gunnar Solskjaer's main targets yet a transfer is struggling to be completed.

Free Slurpees for 7-Eleven Day!
As usual, 7-Eleven will be giving away small Slurpees on July 11 from 11:00am - 7:00pm to celebrate their birthday. We provide weekly newspapers serving Ocean and Monmouth Counties that are free every day, not just on 7/11.

Bakery mixup leaves woman with marijuana-themed birthday cake instead of Moana
Luckily, Kensli, 25, and her mom found the mix-up hilarious, and she shared a picture of the druggy dessert on social media. Her daughter, Kensli Davis, posted on Facebook saying her mom had ordered the cake from a local Dairy Queen.

Laurent Koscielny refuses to travel to United States with Arsenal
Arsenal fans have since been wondering what could have happened behind the scenes for Koscielny to outright refuse to travel. Bordeaux , Lyon and Rennes are some of the top clubs said to be keen in landing the services of the veteran defender.

Multiple injuries aboard Air Canada flight after plane hits turbulence
According toCTV News, on an Air Canada flight set to stop in Vancouver, an emergency landing was made called in Honolulu today. CTV News reports that between 20-25 passengers and at least one crew member have been injured as a result of the incident.

Apple quietly updates Macs to remove Zoom's risky web server
Additionally, you can also disable the option to automatically turn on your camera when you join a Zoom video call. The challenge with something like this Zoom vulnerability is that users might simply be unaware of any danger.

France adopts pioneering tax on tech giants Google, Amazon, Facebook
The tax rate would be set at 3% and could hit some of America's biggest tech companies, including Amazon , Facebook and Google . The French government says the tax does not specifically target USA companies and will affect European and Asian firms as well.