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Asia-Pacific: The Week Ahead (Sept 16-20): New Zealand Minute


Senior Market Analyst at Interactive Brokers

Interactive Brokers’ senior market analyst Steven Levine provides a brief look into New Zealand’s economy, including updates on the country’s housing sector, consumer confidence and gross domestic product (GDP).

New Zealand has generally been suffering from the recent deterioration in global economic activity. The slowdown had spurred the Reserve Bank of New Zealand in August to slash its Official Cash Rate.

Find out more in Asia-Pacific: The Week Ahead (Sept 16-20), New Zealand – Trudging Slowly Over Low Growth at IBKR Traders’ Insight today!

Produced on September 11, 2019

Video Script:

New Zealand’s economic releases in the week ahead include updates on housing, consumer confidence and GDP. New Zealand, which is largely known for its high-quality dairy exports, has been suffering from the recent trade-inspired slowdown in global growth, with GDP in the March quarter continuing at its slowest pace in roughly five years.

The slowdown had spurred the Reserve Bank of New Zealand in August to slash its Official Cash Rate by 50 basis points to a record low of 1.0%. The bank joins several other central banks in the region with rate cuts this year, including the Bank of Korea and the Reserve Bank of India. While the stimulus appears to have helped bolster risk appetite, many of New Zealand’s stocks have been on a rocky path in recent months.

Meanwhile, continued economic slowness is likely to lead the country’s central bank, as well as its government, to inject further stimulus. Find out more in my full week ahead report: ‘New Zealand – Trudging Slowly Over Low Growth’ on IBKR’s Traders’ Insight. I’m Steven Levine for Interactive Brokers, and this has been your New Zealand Minute.

Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Author Security Holding: No Positions

The author does not hold any positions in the financial instruments referenced in the materials provided.

Disclosure: Forex

There is a substantial risk of loss in foreign exchange trading. The settlement date of foreign exchange trades can vary due to time zone differences and bank holidays. When trading across foreign exchange markets, this may necessitate borrowing funds to settle foreign exchange trades. The interest rate on borrowed funds must be considered when computing the cost of trades across multiple markets.

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