The Kiwi was king of pips thanks to a positive (or at least less negative) data release from New Zealand. Meanwhile, risk appetite boosted the Aussie along with the New Zealand dollar.
- NZ ANZ business confidence improves from -50.3 to -38.3 in September
- BOJ’s core CPI (y/y) remains at 0.5% vs. 0.6% expected
New Zealand’s data releases
There were no other top-tier reports on tap, so traders had more time to digest New Zealand’s data releases.
The country’s trade data set a bearish tone at the start of the session when it printed the widest monthly trade deficit on record.
See, exports jumped by 9.9% from a year ago, in August, which is still slower than the 13.9% increase in imports.
This led to a 1.484M NZD trade deficit, higher than the 1.174M NZD gap that we saw in July.
Luckily for the bulls, traders were more interested in the ANZ business confidence report, which jumped from -50 to -38 for the month of September.
The 12-point bounce is supported by improvements in employment intentions and profit expectations. In fact, nearly all activity indicators rebounded for the month (investment intentions slipped).
Since business sentiment is a closely-watched indicator for New Zealand’s economic activity, today’s release provided some relief for the Kiwi bulls.
Overall risk appetite
The lack of market-changing catalysts encouraged Asian session bulls to extend the risk-friendly environment from the previous trading sessions.
Of course, it also didn’t hurt that the Fed is widely expected to share its hawkishness later today. Meanwhile, concerns over the U.S.-China trade war were offset by confidence in the Chinese government’s stimulus.
- Nikkei is up by 0.20% to 23,988.0
- A SX 200 is down by 0.03% to 6,189.6
- Shanghai index is up by 1.27% to 2,816.431
- Hang Seng is up by 1.64% to 27,950.7
Commodity prices also joined the bullish bandwagon, with crude oil getting extra lift from the U.S. session’s rallies.
- Gold is up by 0.03% to $1,201.67 per troy ounce
- Brent crude oil is up by 0.39% to $81.79 per barrel
- U.S. WTI is up by 0.11% to $72.13 per barrel
Major Market Mover(s):
The New Zealand dollar started the session on a weak footing, but a better-than-expected business confidence report turned and an improvement in risk sentiment turned things around for the comdoll.
NZD/USD is up by 26 pips (+0.39%) to .6674; NZD/JPY is up by 29 pips (+0.38%) to 75.38; GBP/NZD is down by 78 pips (-0.40%) to 1.9746; EUR/NZD is down by 67 pips (-0.38%) to 1.7632, and AUD/NZD is down by 8 pips (-0.08%) to 1.0895.
Australia didn’t print economic data today, but overall risk appetite in the markets boosted the comdoll against its major counterparts.
AUD/USD is up by 21 pips (+0.30%) to .7271; AUD/JPY is up by 23 pips (+0.27%) to 82.12; EUR/AUD is down by 46 pips (-0.28%) to 1.6183; GBP/AUD is down by 53 pips (-0.29%) to 1.8125, and AUD/CHF is up by 18 pips (+0.25%) to .7013.
Watch Out For:
- 8:00 am GMT: Credit Suisse economic expectations
- 8:30 am GMT: U.K.’s gross mortgage approvals (39.7K expected, 39.6K previous)
- 10:00 am GMT: U.K.’s CBI realized sales (18 expected, 29 previous)