- New Zealand dairy auction shows another sharp drop in prices
- New Zealand employment change up by 0.4% in Q2
- New Zealand jobless rate down to 5.6% due to lower participation rate
- Japan’s leading indicators up from 104.8% to 105.5%
- Nikkei down by 1.05% for the day
- Italian GDP and German factory orders due
- Swiss CPI to show 0.5% decline in price levels?
The Kiwi was in for a world of hurt in today’s Asian trading session, as the recently held dairy auction revealed another sharp decline in milk prices while the employment report churned out weaker than expected results.
Economists forecast that the recent drop in dairy prices would be enough to drag overall economic growth for New Zealand next year, with some projecting another round of lower milk payouts to suppliers and farmers. Meanwhile, the quarterly jobs release printed a mere 0.4% uptick in employment versus the estimated 0.7% gain. The unemployment rate ticked lower to 5.6% but this was mostly a result of a falling participation rate.
NZD/USD has dipped to a low of .8421 and is moving sideways at the moment while NZD/JPY has found support at the 86.50 area. EUR/NZD has popped up to a high of 1.5866 while GBP/NZD is testing the 2.0000 major psychological level.
Over in Japan, the leading indicators showed an improvement from 104.8% to 105.5%, suggesting that a pickup in economic activity might be seen in the coming months. The Nikkei closed with a 1.05% loss for the day as risk appetite remained weak in the past few hours. USD/JPY is holding steady above the 102.50 level while EUR/JPY managed to stay above 137.00.
Up for release in today’s London trading session is the German factory orders report, which might show a 0.5% rebound from the previous 1.7% decline. Also up for release is the Italian preliminary GDP and industrial production figures. As for the U.K., the manufacturing production report is due and it might show a 0.7% increase for June. Do stay tuned for the release of Swiss CPI as well, with the report slated to print a 0.5% decline in price levels, reminding traders of the possibility of deflation in Switzerland. Good luck!
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