Fundamental Headlines
• NZDUSD – A NZ$2.914 billion, second quarter current account deficit is smaller than the market’s forecast, but annual shortfall grows to NZ$13.6 billion. Ratio to GDP not released by Statistics New Zealand.• USDJPY – Japan’s business sentiment diffusion index reveals a rebound in optimism among industry leaders, suggesting expectations the economy will climb out of its second quarter contraction. A 6.2 point reading in the second quarter BSI report is the first improvement from the indicator in four quarters.• USDCHF – August trade surplus comes in below expectations to print a four-month low SFr 0.64 billion balance. Zew Investor sentiment gauge drops to -26.7, worse than expected and just above record lows.• GBPUSD – Retail sales grow 0.6 percent in August against expectations of no change. Low unemployment and housing continue to carry spending through another rate hike.• Fukui Says Japan's Economy to Keep Growing at Moderate Pace - Bloomberg• BOE's King Blames U.K. Law for Foiling Bank Rescue - Bloomberg• Mervyn King stuns market with £10bn U-turn - Times Online• Saudi Arabia holds back from matching US rate cut - Gluf News• Metals - Gold holds onto gains as dollar continues to languish - Forbes
Written By John Kicklighter, Currency Analyst for DailyFX