In what has been a relatively mixed session, the Kiwi has reacted, rather than led movements. US CPI and core CPI both missed by 0.1%, coming in slightly lower than expected. This was on the back of relatively poor PPI data yesterday, and the USD promptly sold off circa 0.5%. Any hopes of a sustained follow through though were quickly put to bed as Trump turned on his Twitter account. He came out swinging at China, saying they will soon be taking in Billions in tariffs, and were under no pressure to meet as “Our markets are surging, theirs are collapsing”. Hardly the de-escalation in trade tensions that we saw yesterday.
In other news, as widely expected both the ECB and BOE kept interest rates on hold at 0% and 0.75% respectively. Draghi was less dovish than feared, not extending any guidance for pushing out future rake hikes as some were worried on the back of emerging market weakness. This lead to a fresh bid in the EUR. The BOE also upped their Q3 GDP estimate slightly, which supported the Pound.
NZ Business manufacturing index data will be closely watched at 10:30 NZT, given such weakness in business confidence.
Production data out of China at 2:00 pm will be the main focus for the AUD today. US Retail sales overnight closes out the week.
Global equity markets were helped by the low inflation data- Dow +0.47%, S&P 500 +0.42%, FTSE +-0.43%, DAX +0.19%, CAC -0.08%, Nikkei +0.96%, Shanghai +1.15%.
Gold prices are flat at USD$1,206 an ounce, while WTI Crude Oil prices came off a touch, down 2.2% to US $68.72 per barrel.
Current indicative rates:
Upcoming Data releases (NZST):
- 10:30 - Business NZ Manufacturing Index
- 14:00 - Chinese Fixed asses Investment, Industrial Production
- 22:00 - BOE Carney Speaks
- 00:30 - US Core Retail Sales m/m, Retail Sales m/m
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