- New Zealand dairy prices up by 14.8% in latest auction
- NZ quarterly producer input prices down by 0.2% vs. -0.5% forecast
- NZ quarterly producer output prices down by 0.2% as expected
- Japanese trade deficit widened from 0.28T JPY to 0.37T JPY
- Australia’s MI leading index posted another flat reading
Rebound in dairy prices? Meh. The New Zealand dollar shrugged off the 14.8% increase in the GDT index during the latest dairy auction, as forex junkies didn’t seem to believe that a recovery is underway. Heck, Kiwi traders were also unimpressed by the better-than-expected quarterly PPI figures from the country!
Producer input prices showed a smaller 0.2% dip compared to the projected 0.5% decline while output prices chalked up a 0.2% decrease as expected. NZD/USD is down 22 pips (-0.33%), NZD/JPY is down 37 pips (-0.46%), EUR/NZD is up 92 pips (+0.56%), and GBP/NZD is up 93 pips (+0.39%).
In Japan, the latest trade balance showed a wider-than-expected deficit of 0.37 trillion JPY versus the projected 0.18 trillion JPY shortfall. This was also worse than the previous month’s report, which suffered a downgrade from the initially reported 0.25 trillion JPY trade deficit to a 0.28 trillion JPY deficit. Components of the July report reflected a 7.6% year-over-year decline in exports, following the 9.5% slump in June.
There are no major reports lined up for the London trading session, which means that we might see a bit of forex consolidation ahead of the top-tier releases from the U.S. today. Keep in mind that we’re waiting for the July CPI figures and the FOMC minutes – both of which could contain clues on whether or not the Fed can be able to hike rates in September.
Do stay tuned for any updates on the Greek bailout though! Last time I checked, German Chancellor Angela Merkel said that they’re willing to grant debt relief as long as the IMF gets on board with the bailout plan. The tides are turning in favor of Greece these days but you have to remember that the debt drama ain’t over yet!
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!