- Australian construction work done up by 0.3% for Q1
- New Zealand ANZ business confidence down from 64.8 to 53.5
- China to loosen monetary policy in some areas
- Swiss Q1 GDP and April UBS consumption indicator due
- French consumer spending, German unemployment change to move EUR pairs
Weak data clipped the Kiwi’s wings in today’s early Asian trading session, as New Zealand reported a sharp decline in business confidence. The ANZ business confidence index slipped from 64.8 to 53.5 in May, indicating that businessmen are less optimistic with their economic outlook. NZD/USD plummeted from a high of .8570 to a low of .8532 moments after the report was released.
Over in Australia, construction work done for the first quarter of the year showed a 0.3% increase. This was much better than the estimated 1.0% decline and the previous quarter’s 1.1% drop in construction activity. AUD/USD managed to jump to a high of .9270 after the release while AUD/JPY tested the 94.50 mark. News reports showing that the PBOC is looking to ease monetary policy in “some areas” of the economy also added support for the Australian dollar, as the Land Down Under could benefit from Chinese economic stimulus.
Reports lined up for today’s London trading session include Switzerland’s first quarter GDP, French consumer spending, German unemployment change, and U.K. CBI realized sales data. Weak reports from the euro zone could lead to a deeper selloff for the shared currency while strong data could lend support. Stay on your toes for potential changes in market sentiment as well!
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