Euro has been strong most of the day as Italian political risk temporarily receded. Stronger than expected Eurozone CPI reading also provided some support to the common currency. But it's Yen that's taking the spotlight again in early US session on risk aversion. DOW opened losing triple digits and...
The forex markets are mixed today so far. Easing concerns over Italy political turmoil calmed markets temporarily. But the situation is not solve yet. Meanwhile, the upcoming decision on US steel tariff temporary exemption could turn sentiments around again. For now, Commodity currencies are generally higher with the help...
New Zealand ANZ business confidence dropped to -27.2 in May, down from -23.4. That is, a net 27% of businesses are pessimistic about the year ahead. Views on their "own activity" also dipped from 18 to 14.
ANZ noted in the release that "the survey made for fairly uninspiring reading...
In our report last week, we pointed out that monetary policy divergence between the Fed and other major central banks has re-emerged since April. While economic developments in the first several months of the year have reinforced FOMC’s commitment to continue gradual rate hike as planned, other major centrals...
Week beginning 28 May 2018
Prospects for the Australian economy; markets; and global risks.
Australia: business capex, CoreLogic home prices, dwelling approvals, private credit.
NZ: RBNZ Financial Stability report, terms of trade, residential building consents, business confidence.
Euro Area: CPI, unemployment, Bank of Italy Governor speaks.
US: nonfarm payrolls,...
Yen surges broadly today as driving by steep decline in major European and US treasury yields. German 10 year bund yield dropped to as low as 0.497, comparing to prior day's close at 0.559, and it's now at 0.500. UK 10 year gilt yield reached as low as 1.446,...
Yen surges broadly today and is trading as the strongest one, followed by Swiss Franc. On the other hand, Canadian, Australian and New Zealand Dollar are under heavy selling pressure. The boost from optimism in China-US trade talk faded quickly and the markets are back in risk-off mode. DOW...
The development in the forex markets are pretty much unchanged. Australian, Canadian and US Dollar remain the strongest ones for the day. On the other hand, Japanese Yen and British Pound have been taking turns to be the weakest. Receding risks of US-China trade war is a key focus...
The U.S. dollar continued to maintain gains on the day on Friday and marks a strong close to the week. The gains come amid higher bond yields and mounting expectations of a rate hike from the Fed in the coming months.
On the economic front, data on Friday saw the...
Yen suffers broad based selling in today as lifted by return of risk appetite. Asian equities trade generally higher on receding fear of US-China trade war. The joint statement released on Saturday is seen as a "vow" to avoid trade war. It's affirmed by comments from US Treasury Secretary...
New Zealand retail sales was a big disappointment to the markets. Ex-inflation retail sales volume grew merely 0.1% qoq in Q1, much lower than expectation of 1.0% qoq. That's also a sharp slowdown from Q4's 1.4% qoq. Besides, it's the weakest quarter since 2015.
Stats NZ noted in the release...
As the US dollar continues to power ahead, the beleaguered euro and pound will be seeking for some reprieve from key economic indicators out of the Eurozone and the United Kingdom next week. With the US calendar being lighter in the coming seven days, the greenback may lose some...
Canadian dollar drops broadly as employment data missed market section. While it's trading as the weakest one for today, the movement in USD/CAD is rather muted. That's because focus is turning to the greenback again as selling gathers momentum. Weakening treasury yield could be a factor driving the greenback...
The post CPI selloff in Dollar was relatively shallow and the greenback is regaining some footing today. Similar Sterling stays week after post BoE selling, but loss is so far limited. On the other hand, Canadian Dollar remains the strongest one for the week and stays firm ahead of...
New Zealand BusinessNZ Performance of Manufacturing Index rose to 58.9 in April, up from 53.1. That's also the highest level since January 2016.
BusinessNZ's executive director for manufacturing Catherine Beard:
"The fact that the sub-indexes of production, new orders and deliveries of raw materials were all around the 60-point mark helped...
Sterling weakens notably after BoE rate announcement. But loss is relatively limited as it's holding above key near term support level against Dollar, Euro and Yen. On the other hand, Dollar is also suffering some selloff today as core CPI missed market expectation. That's a relive for traders that...
The Reserve Bank of New Zealand left rates on hold at 1.75% earlier with a shift to a more dovish position, adding that the direction of the next rate move is very finely balanced. The Bank lowered its inflation forecast and lengthened its inflation target timeframe. It expects CPI...
Dollar, Sterling and Canadian Dollar remain the strongest three for the week. But is should be noted that the reasons behind the strength are different. The greenback continued to draw support from strength in treasury yields as 10 year yield broke 3% yesterday to 3.004. Fed is also on...
RBNZ left the OCR unchanged at 1.75% in May. The message delivered by the central bank came in slightly more dovish than expected, sending NZDUSD to a fresh 5-month low. In his first meeting in the capacity of the RBNZ Governor, Adrian Orr made some changes in the policy...
The overall RBNZ monetary policy decision is rather dovish. OCR is left unchanged at 1.75% for a 19th straight month as widely expected. Governor Adrian Orr noted in the statement that growth and employment remain "robust" and near their "sustainable levels". But CPI remains below the 2% mid-point of...
As the US dollar took a bit of a breather on Wednesday after a prolonged, three-week rally, kiwi traders were positioning ahead of the Reserve Bank of New Zealand’s rate decision, monetary policy statement, and press conference, all scheduled for Thursday morning in Wellington (Wednesday evening in New York...
Yen remains the weakest one in early US session while strength in oil price is giving Canadian Dollar a strong boost. Dollar, on the other hand, reversed earlier gains and trades broadly lower, except versus Yen. Bullish momentum of the greenback seems to be exhausted ahead of heavy weight...
At 12:30 GMT, US Producer Price Index Ex-Food and Energy (YoY) (Apr) is expected to be 2.4% against a previous reading of 2.7%. Producer Price Index (MoM) (Apr) is expected to be 0.2% from 0.3% previously. Producer Price Index Ex-Food and Energy (MoM) (Apr) is expected to be 0.2%...
The Reserve Bank of New Zealand (RBNZ) will announce its rate decision on Wednesday at 2100 GMT. Policymakers are widely expected to remain on hold, so price action will be driven by any changes in the accompanying statement, as well as the updated economic forecasts. While the broader policy...
The forex markets open the week rather quietly today. Dollar is trading mildly firmer in tight range against other major currencies. Aussie is so far the weakest one today, getting no support from positive business condition and confidence data. Markets could remain quiet today with UK on holiday. The...
RBNZ is expected to keep the official cash rate unchanged at 1.75%.
According to a Reuters poll, all 16 economists surveyed expected RBNZ to stand pat this week. 14 economists expected RBNZ to hold throughout 2018. 8 forecasts RBNZ to hike by the end of Q3 2019.
Sluggish inflation is a...
Dollar is trading slightly lower today as markets digest recent against ahead of FOMC rate decision and statement. Slightly better than expected ADP employment is shrugged of by the markets. Euro survived the test of GDP data and recovers mildly. Sterling also gets some support from better than expected...
By continuing to browse our site you agree to our use of cookies, privacy policy and terms of service. AcceptRejectRead More
Privacy & Cookies Policy
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.