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The major currencies traded on tight ranges thanks to a lack of fresh catalysts and a bit of caution ahead of today’s U.S. CPI and retail sales releases.

  • Business NZ manufacturing index down from 57.9 to 57.5 in September
  • RBA’s financial stability review warns against high household indebtedness
  • China’s trade surplus misses expectations as imports grew faster than exports

Major Events/Reports:

China’s trade data

Data printed a few hours earlier saw the world’s second largest economy clocking in a trade surplus of $28.5B for the month of September, which not only missed analysts’ expectations of a $40B surplus but also marked its lowest reading since March 2017.

Apparently, exports grew by 8.1% from a year earlier in September. And while it’s slower than the expected 8.8% growth, it’s still better than the 5.5% annual increase in August.

Meanwhile, imports jumped by a whopping 18.7% from last year following a 13.3% pop in August. A closer look tells us that growth in inbound shipments hit its fastest growth in six months thanks to imports of commodities such as iron ore and coal.

In yuan terms, exports showed a 9.0% growth following a 6.9% uptick while imports recorded a fast 19.5% uptick against August’s 14.4% reading. This translates to a surplus of 193B CNY, which is a bit lower than the 266B CNY surplus expected and August’s 287B reading.

Another thing to note is Chinese exports to the U.S. hitting its record highs at 13.8% while imports slowed from 18.1% to 15.5% from a year earlier. Will we see the Donald tweet about this?

Major Market Mover(s):

USD

The Greenback continued to edge lower against its major counterparts ahead of the U.S. CPI and retail sales reports.

USD/JPY dipped by 9 pips (-0.08%) to 112.17;
EUR/USD edged 13 pips (+0.10%) higher to 1.3275;
GBP/USD rose by 13 pips (+0.11%) to 1.1848, and
AUD/USD popped up by 13 pips (+0.17%) to .7835.

Watch Out For:

  • 6:00 am GMT: Germany’s final CPI to remain at 0.1%?
  • 7:15 am GMT: Switzerland’s PPI (0.3% expected and previous)