Talking Points:
- Kiwi Dollar Outperforms as Asian Stock Exchanges Shake Off Early Losses
- Swiss Franc May Rise if PPI Tops Forecasts, Cooling SNB Stimulus Outlook
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The New Zealand Dollar outperformed in overnight trade, rising as much as 0.4 percent on average against its leading counterparts. The move tracked a rebound on Asian stock exchanges, pointing to firming risk appetite as the catalyst behind the advance of the sentiment-sensitive currency. Regional bourses initially swooned, seemingly following the negative lead from Friday’s performance on Wall Street, but swiftly recovered ground. The correlation between NZDUSD and the MSCI World Stock Index is now 0.91 (on rolling 20-day studies).
Swiss PPI figures headline an otherwise quiet European data docket. Expectations call for the year-on-year wholesale inflation rate to drop 3.3 percent in February, yielding the largest negative reading since November 2009. Swiss price-growth figures have increasingly outpaced consensus forecasts since October 2014, opening the door for an upside surprise. Such an outcome may drive speculation that the SNB will not announce new easing measures at the policy meeting due later this week, offering a near-term lift to the Swiss Franc.
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Asia Session
| GMT | CCY | EVENT | ACT | EXP | PREV |
|---|---|---|---|---|---|
| 21:30 | NZD | Performance Services Index (FEB) | 55.6 | - | 57.8 |
| 0:30 | AUD | New Motor Vehicle Sales (MoM) (FEB) | 2.9% | - | -1.9% |
| 0:30 | AUD | New Motor Vehicle Sales (YoY) (FEB) | 4.1% | - | 0.2% |
| 4:00 | JPY | Tokyo Condominium Sales (YoY) (FEB) | -2.0% | - | -8.1% |
European Session
| GMT | CCY | EVENT | EXP/ACT | PREV | IMPACT |
|---|---|---|---|---|---|
| 8:00 | CHF | SNB Sight Deposits | - | - | Low |
| 8:15 | CHF | Retail Sales (YoY) (JAN) | - | 1.9% | Low |
| 8:15 | CHF | Producer & Import Prices (MoM) (FEB) | -1.0% | -0.6% | Medium |
| 8:15 | CHF | Producer & Import Prices (YoY) (FEB) | -3.3% | -2.7% | Medium |
Critical Levels
| CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
|---|---|---|---|---|---|---|---|
| EURUSD | 1.0187 | 1.0359 | 1.0428 | 1.0531 | 1.0600 | 1.0703 | 1.0875 |
| GBPUSD | 1.4386 | 1.4583 | 1.4664 | 1.4780 | 1.4861 | 1.4977 | 1.5174 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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