The Events surrounding Fonterra caused some brief weakness in the NZD which has not persisted against the greenback or Aussie dollar but has left our currency down for the week against other currencies. The interest rate impact was minimal and it looks like this time around there will be no measurable hit to the economy as such.
Offshore – for Australia the news is bad with interest rates having to be cut again during the week and some very poor employment numbers released this afternoon. United States jobs data were also less stellar than expected on Friday night and this reminds us that the US economy’s upturn has yet to become truly self-sustaining. In Europe however and the UK some better than expected numbers have recently been released.