Talking Points:
- New Zealand Dollar falls as soft PSI data boosts RBNZ rate cut bets
- British Pound corrects higher after last week’s broad-based selloff
- US Dollar, Yen vulnerable as S&P 500 futures hit at risk-on mood
The New Zealand Dollar underperformed in overnight trade. The currency fell alongside front-end borrowing costs, hinting that firming RBNZ rate cut expectations may have been behind the move. A sharp drop in the Bank of New Zealand’s Performance of Services index may have helped spark the selloff. The report showed the pace of activity growth in the non-manufacturing sector plunged to the weakest since November 2014. The British Pound mounted what appeared to be a corrective recovery having lost ground against all of its major counterparts last week.
Looking ahead, a quiet economic calendar is likely to make for a quiet, consolidative start to the trading week. S&P 500 futures are pointing cautiously higher, hinting at a risk-on mood that may translate into near-term weakness for the anti-risk US Dollar and Japanese Yen. Lasting follow-through seems unlikely however. A wealth of high-profile event risk is due to cross the wires in the days ahead and traders are unlikely to commit to a firm directional bias in the interim.
Asia Session
GMT |
CCY |
EVENT |
ACT |
EXP |
PREV |
22:30 |
NZD |
Performance Services Index (JUL) |
54.2 |
- |
56.4 |
23:01 |
GBP |
Rightmove House Prices (MoM) (AUG) |
-1.2% |
- |
-0.9% |
23:01 |
GBP |
Rightmove House Prices (YoY) (AUG) |
4.1% |
- |
4.5% |
23:50 |
JPY |
GDP SA (QoQ) (2Q P) |
0.0% |
0.2% |
0.5% |
23:50 |
JPY |
GDP Annualized SA (QoQ) (2Q P) |
0.2% |
0.7% |
2.0% |
23:50 |
JPY |
GDP Nominal SA (QoQ) (2Q P) |
0.2% |
0.2% |
0.8% |
23:50 |
JPY |
GDP Deflator (YoY) (2Q P) |
0.8% |
0.7% |
0.9% |
23:50 |
JPY |
GDP Private Consumption (QoQ) (2Q P) |
0.2% |
0.2% |
0.7% |
23:50 |
JPY |
GDP Business Spending (QoQ) (2Q P) |
-0.4% |
0.2% |
-0.7% |
04:30 |
JPY |
Industrial Production (MoM) (JUN F) |
2.3% |
- |
1.9% |
04:30 |
JPY |
Industrial Production (YoY) (JUN F) |
1.5% |
- |
-1.9% |
04:30 |
JPY |
Capacity Utilization (MoM) (JUN) |
-1.5% |
- |
-2.4% |
European Session
GMT |
CCY |
EVENT |
EXP |
PREV |
IMPACT |
07:15 |
Producer & Import Prices (MoM) (JUL) |
-0.2% |
0.1% |
Low |
|
07:15 |
CHF |
Producer & Import Prices (YoY) (JUL) |
-0.9% |
-1.0% |
Low |
08:00 |
CHF |
Total Sight Deposits (AUG 12) |
- |
511.4b |
Low |
08:00 |
CHF |
Domestic Sight Deposits (AUG 12) |
- |
437.3b |
Low |
Critical Levels
CCY |
Supp 3 |
Supp 2 |
Supp 1 |
Pivot Point |
Res 1 |
Res 2 |
Res 3 |
1.0991 |
1.1081 |
1.1122 |
1.1171 |
1.1212 |
1.1261 |
1.1351 |
|
1.2691 |
1.2822 |
1.2871 |
1.2953 |
1.3002 |
1.3084 |
1.3215 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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