Crude Oil declines -2% retreating from Friday’s highs
Key Notes:
- New Zealand Building consents m/m 20.4% vs. -3.3% previously
- Japan preliminary industrial production m/m -0.6% vs. 0.1%
- Australia MI inflation gauge m/m 0.1% vs. 0.2% previously
- Australia HIA new home sales m/m -0.4% vs. 0.5% previously
- New Zealand ANZ business confidence -29.1 vs. -15.3
- Australia private sector credit m/m 0.6% vs. 0.4%
- Japan housing starts y/y 7.4% vs. 11.2%
- German retail sales m/m 1.4% vs. -1% previously
- Italy retail sales m/m -0.3% vs. 0.1%
- Eurozone CPI flash estimates y/y 0.2% vs. 0.2%; Core CPI y/y 1.0% vs. 1.0%
- Italy preliminary CPI m/m 0.2% vs. 0.2%
- Canada current account -17.4 Bn vs. -17.2 Bn
Later
- Chicago PMI
The markets opened Monday on a quiet note with no major market moving releases scheduled for the day albeit some minor releases. The Asian session saw some data from New Zealand with the building consents rising 20.4% for the month after falling to -3.3% the month before. Business confidence fell to -29.1 for the month, below estimates of 15.3. The Kiwi was down -1.3% for the day as the currency was weaker against the Greenback falling from the opening session highs of 0.64695. The Aussie was also trending lower today falling from the daily open. Economic data from Australia saw the private sector credit rise moderately by 0.6% and managing to beat estimates of 0.4%. Inflation gauge was weak at 0.1% while new home sales declined -0.4%. The RBA along with the Australian housing regulator have been focused on cooling the Australian housing markets which has seen home prices rise to record highs on account of low interest rates from the RBA, something which the Central Bank had been trying to fight in order to prevent inflating housing market bubble.
The Yen was flat for the most part and was trading -0.11% for the day as USDJPY was trending modestly lower after opening today at 121.641.
The European session was quiet as the UK markets were closed on account of a bank holiday. German retail sales grew at a pace of 1.4%, up from -1% declines previously. Other Eurozone data included the flash CPI estimates which remained flat at 0.2% on the headline and 1.0% on the core. The Euro was up 0.31% against the Greenback after trading flat for the most part.
GBPUSD was trading flat for the day with the Cable trading sideways in today’s intraday sessions but remains supported above Friday’s lows at 1.5345.
The US trading session is also expected to be quiet with only the Chicago PMI due for release later in the day. Canada’s current account declined -17.4 billion, below market expectations. The reduction in the deficit was due to the trade in goods and services balance. USDCAD was trending stronger today, up 0.46% as Crude Oil prices are down -2.89% after posting a strong rally last week.
