- NZ trade balance report surprises with a deficit in August
- Japan’s leading economic index remains unchanged at 100 in July
Forex price action was a mixed bag of nuts, as a lack of catalysts got mixed in with last week’s economic themes.
New Zealand posts trade deficit – Data from New Zealand’s Statistics Bureau reflected a deficit of 1.265B NZD in August, much wider than the expected 740M NZD and marks the widest deficit in two years. Yikes!
A closer look reveals that exports had dropped by a whopping 8.7% from a year earlier due to lower sales of meat and edible offal, milk powder, butter, and cheese. Meanwhile imports also slid by 3.1% thanks to cuts in purchase of capital goods and lower crude oil imports.
Upticks in oil prices – The Black Crack saw some support during the Asian session after Noureddine Boutarfa announced that Saudi Arabia, the world’s biggest oil exporter, has offered to cut its output to January levels.
Algeria’s Energy Minister called the offer “an interesting step” even though Saudi’s January production of 10.2 million barrels a day is only a hair’s breadth from its 10.69 million barrel record high production in August. Still, the offer signaled the oil producer’s willingness to cooperate in this week’s OPEC meeting, and cheered oil bulls across the board.
Brent crude oil is up by 0.77% to $46.84 while U.S. crude oil prices is also up by 0.76% to $44.82.
Major Market Movers:
GBP – There were no catalysts to support a pound move, but the currency gained across the board for most of the session. Maybe a bit of profit-taking from last week’s selloff?
GBP/USD is up by 11 pips (+0.09%) to 1.2979, EUR/GBP is down by 8 pips (-0.09%) to .8651, and GBP/AUD is up by 13 pips (+0.08%) to 1.7036.
- 8:00 am GMT: German Ifo business climate (106.3 expected, 106.2 previous)
- 8:00 am GMT: Italian retail sales (0.0% expected, 0.2% previous)
- 8:30 am GMT: BBA mortgage approvals (37.2K expected, 37.7K previous)
- 9:30 am GMT: SNB Governor Jordan to speak in Geneva. Watch out for any threats of currency intervention!
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!