- New Zealand dairy auction saw 1.4% rebound in prices
- Bank of New Zealand downgraded Fonterra milk payout forecast
- Australia’s MI inflation expectations down from 3.5% to 3.4% in Sept
- China’s foreign direct investment down by 1.4% ytd
- Euro zone final CPI readings due
And the New Zealand dairy auction results are out! While prices saw a 1.4% increase – the first positive reading in months! – the Kiwi still appeared unimpressed. NZD/USD is stalling below the .8000 handle and is down by 0.16% while NZD/JPY posted a mere 0.07% gain at 84.63.
The Bank of New Zealand (not to be confused with the RBNZ) still downgraded its milk payout forecasts for Fonterra, which means that farmers and dairy suppliers are likely wind up with lower incomes.
In Australia, MI inflation expectations slid lower from 3.5% to 3.4% in September, citing falling petrol prices as the main reason for the decline. Meanwhile, China marked a 1.4% year-to-date decline in foreign direct investment, adding to signs of a potential slowdown in the country. AUD/USD is down 0.47% at 14 pips below the .8800 handle while AUD/JPY is down 0.25% at the 93.20 levels.
The forex calendar shows that data is light in the upcoming London trading session, with only a few medium-reports on tap. The euro zone will print its final headline and core CPI figures for September at 10:00 am GMT and no changes are expected from the initially reported readings of 0.3% and 0.7% respectively. Swiss SECO economic forecasts are also up for release, with a downbeat outlook likely to weigh on the franc.
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