- New Zealand economy expanded by 0.4% in Q2 vs. 0.5% forecast
- Japanese trade deficit narrowed from 0.38T to 0.36T JPY
- Japanese exports down by 0.4%, imports down by 0.6%
- SNB interest rate statement coming up
- U.K. retail sales to show 0.2% uptick for Aug?
Is this the calm before the storm? The U.S. dollar is treading carefully ahead of the FOMC statement, although some forex pairs managed to make some moves after the recent releases. New Zealand reported that the economy expanded by 0.4% in the second quarter of the year, slightly weaker compared to the estimated 0.5% growth figure but still an improvement from the previous period’s 0.2% expansion.
NZD/USD is moving sideways and is testing the top of the short-term range at .6370 (+0.10%), NZD/JPY was able to score a larger 15-pip lead at 76.84 (+0.17%), and AUD/NZD is finding resistance at 1.1300 (-0.05%).
Yen pairs are slightly higher after Japan printed a narrower trade deficit of 0.36 trillion JPY compared to the previous 0.38 trillion JPY shortfall. A closer look at the components of the report shows a 0.4% decline in exports and a 0.6% drop in imports, reflecting weakness on both international and domestic fronts.
USD/JPY is up 10 pips to the 120.65 area (+0.08%), EUR/JPY is up 19 pips to 136.27 (+0.13%), GBP/JPY is up 38 pips just above the 187.00 handle (+0.20%), and AUD/JPY is up 7 pips to 86.80 (+0.04%).
While dollar pairs might be stuck in consolidation leading up to the FOMC statement much later on, we’ve still got a couple of potential market-movers on the docket for pound and franc pairs. To be specific, the SNB interest rate statement is coming up at 8:30 am GMT and this could spur losses for the Swiss currency if central bank head Thomas Jordan decides to hint at forex intervention. After all, data from Switzerland has mostly been weaker than expected and the ECB has already expressed its willingness to ease, which means that SNB policymakers aren’t likely to let their guard down.
Aside from that, we’ve also got the U.K. retail sales report lined up, with analysts expecting to see a 0.2% increase in consumer spending for August. My buddy Forex Gump came up with a neat trading guide for the August U.K. retail sales release so I suggest you go ahead and check it out if you’re hoping to catch quick pips in the London trading session. Good luck!
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!