- FOMC member George: Rate hike subject to economic outlook
- New Zealand dairy price index down by 7.4%
- NZ quarterly employment up by 0.9% vs. 0.8% forecast
- NZ jobless rate fell from 6.0% to 5.3% in Q4 2015
- API reported an increase of 3.837 million barrels in oil stockpiles
- WTI crude oil dropped back below $30/barrel
Risk-off vibes seem to be creeping back in the forex market, as safe-haven currencies advanced while the comdolls lagged behind.
Oil oversupply concerns… again! – Crude oil reports continued to hog the spotlight and affect overall market sentiment, as the latest report from the American Petroleum Institute reflected a buildup in stockpiles. Oil inventories rose by 3.837 million barrels last week while other energy supplies also showed a buildup.
WTI crude oil fell back below $30/barrel to the $29.50/barrel levels and Brent crude oil slid to $32/barrel. Credit ratings agency S&P then announced another round of downgrades in their outlook for oil companies, including Chevron, Exxon, and Southwestern Energy.
New Zealand GDT auction and jobs data – In the latest Global Dairy Trade auction in New Zealand, dairy prices chalked up another sharp drop of 7.4%, worse than the previous 1.4% fall. Keep an eye out for another possible downgrade in Fonterra payout forecasts.
New Zealand quarterly employment report – Headline jobs figures came in stronger than expected, as the quarterly employment change indicated a 0.9% gain versus the projected 0.8% increase while the unemployment rate slid down from 6.0% to 5.3% instead of rising to the estimated 6.1% figure.
However, a closer look at the components of the report reveals that the “improvement” in the jobless rate was actually caused by a sharp drop in labor force participation. Annual wage inflation was also weak, with the labor cost index falling to 1.5%.
Major Currency Movers:
USD – The Greenback made a bunch of strong moves here and there, but it actually chalked up a mixed performance against its forex peers.
USD/JPY retreated below 120.00 to a low of 119.64, USD/CHF is down to 1.0176, and EUR/USD bounced back up to a high of 1.0936. Meanwhile, AUD/USD is down to .7012 and USD/CAD is testing the resistance at 1.4100 after previously dipping below 1.4000.
- 12:30 am GMT: Australian trade balance (-2.45B AUD expected, -2.73B AUD previous)
- 1:45 am GMT: Chinese Caixin services PMI (50.5 expected, 50.2 previous)
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!