The Greenback returned some of its recent wins on reports of a subpoena for Trump’s campaign documents but quickly got back on its feet. The Australian dollar, on the other hand, got wiped out despite the lack of top-tier data.
- New Zealand PPI input prices up 0.1% vs. 1.2% consensus
- New Zealand PPI output prices ticked up by 0.1% vs. 1.4% estimate
- Australian new motor vehicle sales flat in Oct after falling 0.4% in Sept
- U.S. Special Counsel Mueller subpoenaed Trump’s election documents
- Emails from top campaign officials also included in subpoena
Spotlight on Russian election hack
Just when the U.S. dollar was having a pretty good run following the House vote on their version of the tax bill, the currency had to cough up some of its recent wins when the attention quickly turned to the ongoing investigation into Russia’s alleged involvement in the elections. Plot twist!
A report on the Wall Street Journal revealed that Special Counsel Mueller had issued a subpoena last month for Trump’s campaign documents that reference a set of Russia-related keywords.
According to the the Senate Judiciary Committee, however, senior White House official Jared Kushner hasn’t turned over all the documents just yet.
Market participants can’t help but speculate that the Trump team may be hiding something and that the investigation could undermine the administration’s current reform efforts if it does hit gold.
Weak NZ producer prices
Over in New Zealand, the latest batch of PPI readings turned out to be a huge disappointment and hinted at weaker inflationary pressures down the line.
For Q3, PPI input prices posted a meager 0.1% uptick instead of the estimated 1.4% gain. Output prices were also up by a measly 0.1% versus expectations of a 1.2% increase.
Components of the report revealed that input prices were mainly propped up by dairy product manufacturing and electricity costs while output prices saw gains from dairy cattle farming.
Still, these numbers pale in comparison to the previous 1.4% gain in input prices and 1.3% increase in output prices reported in Q2.
Risk aversion back in play?
European markets seem poised for a weak open as futures are in the red:
- German DAX futures are down 38 points (-0.29%)
- French CAC futures are down 8 points (-0.15%)
- Euro Stoxx 50 futures are down 7 points (-0.20%)
- London FTSE 100 futures are down 20 points (-0.27%)
Commodities, on the other hand, are looking mixed:
- WTI crude oil recovered to $55.37 per barrel (+0.42%)
- Brent crude oil is down to $61.35 per barrel (-0.02%)
- Gold is up to $1,282.53 per troy ounce (+0.53%)
Major Market Mover(s):
NZD & AUD
The Kiwi was dragged lower by weak quarterly PPI readings while the Aussie followed its buddy down, also on the narrowing spread between Australian and U.S. bond yields.
NZD/USD sank to .6831 (-0.23%), NZD/JPY is down to 76.89 (-0.71%), and NZD/CAD hit a low of .8703 (-0.38%)
AUD/JPY is down to 85.06 (-0.84%), AUD/CAD tumbled from .9678 to .9630 (-0.49%), AUD/USD is down to .7559 (-0.37%), and GBP/AUD hit a high of 1.7511 (+0.68%)
Watch Out For:
- 8:30 am GMT: ECB head honcho Draghi’s testimony
- 9:00 am GMT: Euro zone current account balance (30.2B EUR expected, 33.3B EUR previous)
- 9:00 am GMT: Italian trade balance (3.42B EUR expected, 2.77B EUR previous)