- Australia’s MI inflation expectations up by 3.4% vs. 3.6% uptick in February
- RBNZ cuts interest rates from 2.50% to 2.25%
- China’s CPI jumps by 2.3% in February vs.1.8% uptick expected and previous
- China’s PPI meets expectations at -4.9% vs. -5.3% previous
Another mixed session for forex traders, as they priced in currency-specific reports and catalysts ahead of other major economic releases.
China’s CPI and PPI data – China’s consumer prices rose by its fastest pace since mid-2014 in February, as a cold wave pushed food prices up during the Lunar New Year and dragged the overall figures higher.
The consumer price index (CPI) rose by 2.3% from a year earlier, faster than last month’s (and expected) 1.8% uptick. However, non-food prices were limited to a 1.0% increase while services inflation slowed down. This is probably why market players mostly shrugged off the strong headline figures. Meanwhile, the PPI came in at -4.9% as expected, a bit better than last month’s 5.3% decline.
Overall risk appetite – Optimism in equities trading led market risk sentiment today, as the RBNZ’s latest interest rate cut and expectations for more ECB stimulus today spurred investors into taking on a bit of risk. It also didn’t hurt that oil prices had hit three-month highs yesterday after an inventory report reflected a bit of withdrawal.
Major Currency Movers:
USD – The Greenback snuck in a few pips against its European counterparts ahead of the ECB’s monetary policy decision.
EUR/USD fell by 24 pips (-0.22%) and GBP/USD dropped by 4198.
JPY – Japanese equities traders felt the risk appetite love and took the yen in the skies with them today. Nikkei was up by 1.39% by lunch break.
USD/JPY dropped to a session low of 113.15 before spiking back up to 113.75 while EUR/JPY also saw a rally from its 124.32 lows to 124.86. Ditto for GBP/JPY, which recovered from 160.73 to 161.50.
Comdolls – Commodity-related currencies steadied at their post-RBNZ rate cut prices, as comdoll traders shrugged off data from China.
AUD/USD is stuck in a 10-pip range near .7470, USD/CAD inched 27 pips higher despite the slip in oil prices, and NZD/USD steadied below the .6650 minor psychological area.
- 7:00 am GMT: German trade balance (19.2B EUR surplus expected vs. 19.4B EUR last month)
- 7:45 am GMT: French industrial production (0.8% expected vs. -1.6% previous)
- 9:00 am GMT: Italian quarterly unemployment rate (11.5% expected vs. 11.7% previous)
- 12:45 pm GMT: ECB’s monetary policy decision. Market players are expecting more easing, so watch out for potential volatility!
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!