The Greenback gained a few pips against its counterparts while some Asian session equities traders caught up to yesterday’s risk aversion.
- NZ trade surplus hits 85M NZD vs. -200M NZD expected, 246M NZD in June
- Dollar gained a few pips as Jackson Hole Symposium commences
Surprise trade surplus for New Zealand
A few hours ago we saw New Zealand print a trade surplus of 85 million NZD for the month of July. This marks the fifth consecutive month of surpluses after an 8-month stretch of deficits.
Analysts had expected a deficit of 200 million NZD after seeing a surplus of 246 million NZD in June.
Exports popped up by 16.8% from a year earlier in July, marking the fastest expansion in two years. Meanwhile, imports went up by 5.4% after rising by 7.6% in June.
Apparently, milk powder, butter, and cheese (+51%) led the exports, while vehicle purchases (+25%) boosted imports higher.
The upside surprise could have boosted Kiwi much higher across the board if not for investors still feeling the burn from yesterday’s GDP downgrades in New Zealand Treasury’s pre-election fiscal report.
Profit-taking ahead of Jackson Hole meetings
With not a lot of data on the docket, Asian session traders had time to catch up to yesterday’s overall risk averse vibes.
If you recall, Trump’s remarks over a possible government shutdown, as well as talks of skirmishes among key U.S. lawmakers had weighed on sentiment during the U.S. session.
Fortunately for the dollar, profit-taking soon ensued as traders prepare for the Jackson Hole Symposium scheduled to start later today. Read Forex Gump’s trading guide if you’re planning on trading the event!
Major Market Mover(s):
The Greenback caught a few pips against its counterparts as traders took profits from their higher-yielding bets ahead of today’s Jackson Hole meetings.
USD/JPY jumped by 22 pips (+0.20%) to 109.19
EUR/USD slipped by 18 pips (-0.15%) to 1.1801,
GBP/USD is down by 14 pips (-0.11%) to 1.2788, and
AUD/USD is down by 10 pips (-0.13%) to .7900.
NZD/USD is up by 5 pips (+0.07%) to .7231
NZD/JPY is up by 21 pips (+0.27%) to 78.94
EUR/NZD is down by 35 pips (-0.21%) to 1.6324
GBP/NZD is down by 35 pips (-0.20%) to 1.7687, and
AUD/NZD is down by 21 pips (-0.19%) to 1.0926.
Watch Out For:
- 9:30 am GMT: U.K.’s second GDP estimate expected to remain at 0.3%
- 9:30 am GMT: U.K.’s preliminary business investment (q/q) (0.2% expected, 0.6% previous)
- 9:30 am GMT: U.K.’s services index (3m/3m) (0.5% expected, 0.4% previous)
- 9:30 am GMT: U.K.’s mortgage approvals
- 11:00 am GMT: U.K.’s CBI realized sales (15 expected, 22 previous)