- New Zealand ANZ commodity prices down by 4.0% in April
- Australia quarterly PPI up by 0.9% vs. 0.6% consensus
- Spanish and Italian manufacturing PMI due
- UK construction PMI to decline from 62.5 to 62.2?
- Swiss SVME PMI to show stronger expansion
Looks like forex traders are sittin’ tight ahead of the NFP! Price action in today’s Asian trading session was relatively calm, with USD/JPY moving sideways inside a 15-pip range and EUR/USD posting small losses. AUD/USD and NZD/USD saw a little more volatility compared to the rest of the dollar pairs, as Australia printed a stronger than expected 0.9% increase in quarterly PPI while New Zealand showed a 4.0% decline in ANZ commodity prices data for April.
Over in Japan, economic data continued to impress as household spending increased by an annualized 7.2% versus the estimated 1.7% rise. The jobless rate held steady at 3.6%, convincing yen bulls that overall spending could stay supported despite the recent sales tax hike. In fact, a newspaper source indicated that the government is already mulling a corporate tax cut for 2015.
In the next few hours, we’ll see manufacturing PMI from Spain and Italy. Both euro zone economies are expected to show small improvements in the manufacturing sector, which might then keep the euro supported throughout the London session. Do watch out for the release of Swiss SVME PMI as well, along with the UK construction PMI reading. Towards the end of the London session, make sure you brace yourselves for potential positioning ahead of the much-awaited NFP release!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!