- U.S. building permits unchanged at 1.14M in August vs. 1.17M forecast
- U.S. housing starts down from 1.21M to 1.14M in August vs. 1.19M forecast
- New Zealand GDT price index up 1.7% in latest auction
- New Zealand visitor arrivals down 1.9% in August
The Greenback was all over the place as New York session traders seemed to have gotten distracted by news of the Brangelina split in the absence of other major reports.
U.S. housing data – The only top-tier reports out of the U.S. were the building permits and housing start figures, both of which came in below consensus for August. Building permits didn’t budge from 1.14M instead of rising to the 1.17M consensus. Meanwhile, housing starts slipped from 1.21M to 1.14M, sharper than the estimated fall to 1.19M.
Analysts noted that the U.S. housing market is just taking a breather for now, after posting consecutive months in strong gains. Labor market improvements, low borrowing costs, and overall positive vibes in the construction industry could pave the way for a rebound later on.
New Zealand GDT auction – Dairy prices rose for the fourth Global Dairy Trade auction in a row, posting a 1.7% increase during this week’s round. The gains were led by a 7% pickup in butter milk powder prices while majority of the other products also reported increases, except for whole milk powder.
Even though the pace of price gains has been slowing, it’s still worth noting that dairy prices are up for a couple of months already, likely contributing to upgrades in milk payout forecasts for farmers and even stronger trade revenues for the sector. That’s good news for New Zealand, which relies heavily on its dairy industry and its exports!
Major Market Movers:
GBP – The pound pulled up from its dive earlier in the day but not enough to recoup most of its losses.
GBP/USD bounced from a low of 1.2947 to 1.2985, GBP/JPY retreated from a low of 131.66 to 132.23, EUR/GBP dropped from a high of .8631 to .8585, and GBP/AUD climbed from a low of 1.7138 to consolidate below 1.7200.
- 11:50 pm GMT: Japanese trade balance (0.50T JPY expected, 0.32T JPY previous)
- 12:30 am GMT: Australia MI leading index
- 3:00 am GMT: New Zealand credit card spending
- Tentative: BOJ statement and press conference (See Forex Gump’s preview here!)
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!