There were no major economic reports scheduled during the session, so traders focused on taking a bit more risk after pricing in Uncle Sam’s weak inflation release.
- Business NZ manufacturing index rockets from 53.1 to 58.9 in April
- New Zealand’s food price index up by 0.1% vs. 1.0% gain in March
- Australia’s home loans down by 1.9% vs. 0.2% decrease in February
Australia’s home loans report
Data from the Australian Bureau of Statistics (ABS) showed the value of new home loans dropping by 2.2% in March against expectations of a 1.9% dip and February’s 0.2% growth.
Investment lending for new homes also plummeted by 9.0%, which is a heck of a lot faster than February’s 0.5% contraction. In fact, 9.0% marks the largest monthly decline since September 2015!
Market players mostly shrugged off the report, however, since the numbers reflect March’s figures, and are unlikely to sway the RBA from keeping its rates steady for a while yet.
A bit of risk-taking
A lack of top-tier economic releases didn’t stop yield hunters from buying higher-yielding bets.
Of course, it might have helped that Uncle Sam printed a weaker-than-expected inflation report. See, the data miss took the shine out of dollar-denominated investments, and tempered the capital flight out of non-dollar-denominated assets.
- Nikkei is up by 1.09% to 22,743.1
- Australia’s A SX 200 is down by 0.10% to 6,110.1
- Hang Seng is up by 1.36% to 31,227.8
- Shanghai index is down by 0.08% to 3,171.904
Precious metals weren’t in on the party, however.
- Gold is down by 0.9% to $1,319.96
- Brent crude oil is down by 0.22% to $77.30
- U.S. WTI is down by 0.15% to $71.27
Major Market Mover(s):
JPY and CHF
A bit of risk-taking in the markets dragged low-yielders like the yen and franc lower across the board.
USD/JPY is up by 8 pips (+0.07%) to 109.47
AUD/JPY is up by 10 pips (+0.12%) to 82.49
NZD/JPY is up by 10 pips (+0.13%) to 76.25
GBP/JPY is up by 24 pips (+0.16%) to 148.08
GBP/CHF is up by 14 pips (+0.10%) to 1.3569
NZD/CHF is up by 7 pips (+0.10%) to .6987
AUD/CHF is up by 7 pips (+0.08%) to .7558
Watch Out For:
- No major data releases during the London session. Stay tuned for any news that might affect risk sentiment though!