Article Highlights

  • Canadian wholesale sales up 1.1% vs. 0.3% forecast
  • New Zealand GDT index down 0.5% in latest auction
  • New Zealand trade deficit at 705M NZD vs. 500M NZD forecast
  • New Zealand visitor arrivals ticked up by 0.5% in Nov
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Rally and reverse! The Greenback tried to push for more gains but eventually ran out of steam and pulled back.

Major Events:

Crude oil updates – Word through the oil pipeline is that Libya is planning on adding 270K barrels per day in production over the next three months, casting doubts that the OPEC deal would be effective. Keep in mind that Libya is exempted from the deal so there’s no limit to how much oil they can pump out even as the rest of the cartel complies with limits on production.

Mixed data from New Zealand – Economic reports from New Zealand were so-so as the bi-weekly Global Dairy Trade auction broke its positive streak and printed a 0.5% dip in prices. Meanwhile, visitor arrivals ticked up by 0.5% as annual migration and travel reached record highs in November.

The trade deficit came in at a wider than expected 705 million NZD shortfall compared to the 500 million NZD forecast but it was smaller than the previous 815 million NZD deficit. Components of the report indicated that meat shipments dragged export activity down by 12% month-over-month in November, erasing the 9.3% gain in the previous month. Imports slipped 9% as well, reflecting a slowdown in domestic demand.

Major Market Movers:

CAD – Even with the dip in oil prices, the Loonie was one of the better performers for the day as it got back on its feet thanks to upbeat Canadian manufacturing sales data.

USD/CAD retreated from a high of 1.3426 down to 1.3380, CAD/JPY rose from 81.27 to 81.75, EUR/CAD is back down to the 1.3900 handle, and GBP/CAD broke below 1.6550.

Watch Out For:

  • 4:30 am GMT: Japanese all industries activity index (0.1% expected, 0.2% previous)

See also:

London Session Recap

Asian Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

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