The Traderszone Network

In the first three posts of the series I sketched out a simple model of inflation and NGDP growth.  For large persistent changes in the money supply, M dominates everything else.  But inflation reflects both money growth and changes in the real demand for money.  So real GDP growth raises real money demand, and hence is deflationary, while higher nominal interest rates reduce real money demand, and hence are inflationary.

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Some of the stuff around on New Zealand:
CBA on the AUD/NZD:
– AUD/NZD will likely to continue to edge higher toward 1.1300
Cites:
– RBNZ likely to cut rates next month

NZD/USD dropped into the stop zone below 0.6550 … and sorta just halted
There has been pretty much no bounce and now its extending its losses

AUD/NZD buying is another factor taking its toll on it today … more to come

Since the financial crisis, no bank has bought back more stock than Wells Fargo.

And CSI 300 also to open up 0.6%

Heading into the China session, offshore Yuan signaled a 1% devaluation was on the cards. Of course, all media eyes were focused on the disaster in Tianjin but after 3 days of what was supposed to a ‘one-off’ adjustment, The PBOC has in fact surprised with a modestly stronger fix at 6.3975 from yesterday’s 6.4010 Fix. That leaves the CNY Fix devaluation to a 4.60% loss in 4 day.

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People’s Bank of China (PBOC) sets yuan reference rate at 6.3975
– Sets the mid point for the yuan slightly stronger than yesterday’s 6.4010
– -1.9% on Tuesday
Smallest.