AUD and NZD gains on a risk off sentiment
- Australia MI Inflation Gauge m/m 0.1% vs. 0.0% previously
- Japan Retail sales y/y 1.8% vs. 0.9%
- Japan prelim industrial production m/m 1.4% vs. 1.9%
- New Zealand ANZ Business confidence 14.6 vs. 10.5 previously
- Australia company operating profits q/q 1.3% vs. 1.1%
- Australia private sector credit m/m 0.7% vs. 0.6%
- Japan housing starts y/y -2.5% vs. 2.5%
- German retail sales m/m -0.4% vs. 0.3%
- UK net lending to individuals m/m 4.8bn vs. 4.8bn
- UK M4 money supply m/m 0.6% vs. -0.2%
- UK mortgage approvals 70k vs. 70k
- Italy preliminary CPI m/m -0.4% vs. -0.2%
- German preliminary CPI m/m 0.1% vs. 0.1%
- Canada current account -16.2bn vs. -15.2bn
Later
- Chicago PMI
- US Pending home sales
- New Zealand overseas trade index
The commodity risk currencies got off on a strong bullish note with the Aussie and the Kiwi making early gains. AUDUSD started the day on a weak note after dropping to 0.7172 from the opening price at 0.719 but soon reversed the losses to trade near 0.7215, nearly 0.28% gains for the day at the time of writing. AUDUSD however remains within Friday’s high. Data from Australia today included the inflation gauge which increased 0.1% while the operating company profits surged 1.3% for the quarter including private sector credit which was up 0.7% for the month.
The NZDUSD also fell at the opening hours but managed to rally 0.48% at the time of writing, trading at 0.6567. Data from New Zealand included the business confidence which increased to 14.6 from 10.5 previously.
The Japanese Yen was weaker today with USDJPY trading near session highs of 123.11 before easing back lower. Retail sales from Japan surged 1.8% annualized beating estimates of 0.9% while the preliminary industrial production increased 1.4% but coming out below the estimates of 1.9%. Housing starts were weak, falling -2.5% annualized below estimates of 2.5% growth.
The European trading session saw the Euro staying choppy with the single currency seen testing intraday lows near 1.05675 before managing to turn around higher. EURUSD remains weak, down -0.13% for the day. There were no major releases scheduled from Europe, with only German retail sales numbers to go by, which fell -0.4%, below estimates of 0.3%. Italy’s preliminary CPI showed a contraction of -0.4% while Germany’s preliminary CPI was up 0.1% as expected.
The British Pound was also weaker in today’s trading as GBPUSD fell -0.08% trading near a 4-week low testing the 1.50 psychological price level before pulling back. Data from the UK included the net lending which came as expected at 4.8 billion while the M4 money supply increased by 0.6% beating estimates of -0.2% declines.
The US trading session was marked with Canada’s current account which contracted by -16.2 billion, beating estimates of -15.1 billion. The trade deficit came about as Canada’s exports improved more than expected in the third quarter. USDCAD is down -0.04% for the day, reversing the gains after posting an intraday high to 1.3391.
The remainder of the evening will see the US Chicago PMI and pending home sales numbers followed by New Zealand’s overseas trade index.