- U.S. existing home sales up from 5.57M to 5.61M vs. 5.52M forecast
- U.S. crude oil inventories increased by 2.3 million barrels
- New Zealand economy expanded by 1.1% in Q3 vs. 0.8% consensus
- New Zealand current account deficit widened to 4.89B NZD as expected
Markets seem to be in holiday mode already as most major pairs rocked back and forth inside their ranges.
Stocks retreat despite upbeat data – Wall Street closed lower for the day as more traders probably booked profits ahead of the holidays. The Dow 30 index closed 32.66 points down to 19,941.96 (-0.16%), the S&P 500 index closed 5.58 points down to 2,265.18 (-0.25%), and the Nasdaq closed 12.51 points down to 5,471.43 (-0.23%).
Uncle Sam printed stronger than expected existing home sales data for November, as the number climbed from 5.57 million to 5.61 million instead of falling to the projected 5.52 million reading. This marked the third consecutive month in gains, with sales driven mostly by consistent improvements in the jobs market.
Upbeat NZ GDP – New Zealand boasted of a stronger than expected 1.1% growth figure for Q3 2016, outpacing the consensus of a 0.8% expansion and the previous GDP reading which was downgraded from 0.9% to 0.7%. On a year-over-year basis, growth came in at 3.5%.
Components of the report indicated that the pickup was mostly spurred by higher household spending partly due to a rise in tourism. Exports printed a negative reading while imports were up due to a surge in aircraft purchases. Most of the business sectors reported growth for the period while the agriculture industry lagged. Meanwhile, the current account balance printed a 4.89 billion deficit as expected, much larger than the earlier 0.93 billion NZD shortfall.
Major Market Movers:
CAD – The Loonie gave back some of its recent gains as the U.S. crude oil inventories showed a surprise buildup of 2.4 million barrels in stockpiles.
USD/CAD resumed its climb from 1.3363 to a high of 1.3447, CAD/JPY retreated from 87.94 to a low of 87.37, and GBP/CAD popped up from 1.6486 to the 1.6600 handle.
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
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