- New Zealand quarterly CPI at 0.3% vs. 0.4% consensus
- New Zealand dairy auction turns out weaker than expected again
- Chinese GDP up by 7.5% vs. 74.% consensus
- Chinese industrial production showed 9.2% annualized gain
- Chinese retail sales increased by 12.4% year-over-year
- U.K. claimant count change and jobless rate to push pound higher?
- Swiss ZEW economic expectations index up for release
Oh, what a bloodbath! The Kiwi and Aussie were among the biggest losers in the Asian trading session, after New Zealand released a lower than estimated quarterly CPI of 0.3% and reported another weaker than expected dairy auction. Analysts have projected that top dairy companies will have to lower milk prices once again, as the the Global Dairy Trade index chalked up another massive decline.
NZD/USD has fallen from the .8800 levels to a low of .8689 as of this writing while NZD/JPY has also plummeted by more than a hundred pips. AUD/USD is currently testing the .9350 minor psychological level, supported in part by Chinese data coming in line with expectations.
Chinese GDP marked a 7.5% growth reading, slightly stronger than the projected 7.4% figure, while industrial production chalked up an impressive 9.2% annualized gain. Retail sales are up by 12.4% year-over-year, a bit lower compared to the 12.5% consensus.
Other major forex pairs have also weakened in today’s Asian trading hours, with EUR/USD continuing its drop to a low of 1.3556 and GBP/USD returning some of its recent gains after reaching a high of 1.7188 yesterday. Yen pairs also edged lower as risk appetite weakened for most of the session.
In the next few hours, the pound might get a chance to recover as the U.K. claimant count change and jobless rate might show strong improvements in the country’s labor sector. Also lined up for today’s London session is the Swiss ZEW economic expectations report, and a reading below the previous 4.8 figure might lead to more franc weakness.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
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