Soft Chinese inflation numbers released overnight combined with weak Chinese imports announced earlier in the week have kept the pressure on commodities overnight with WTI crude oil falling toward the $90.00 level and Brent crude dropping well away from $100.00 despite ongoing turmoil in Iraq and elsewhere. Grains also remain under pressure in the wake of this week’s positive US crop report and declining Ukraine tensions.
NZD has taken the brunt of the selling with another kick from the RBNZ adding to the commodity impact. In the statement Governor Wheeler indicated that despite a 5 cent fall since the last meeting he doesn’t think that the Kiwi Dollar has fully reflected lower inflation and a more hawkish Fed going forward.
AUD, meanwhile did not get a boost from the Australian employment report. The huge headline number seems too good to be true particularly since it was all part-time jobs with full time job growth flat. CAD is also trading lower this morning with crude oil sinking.
GBP continues to rebound following yesterday’s poll results that showed the No side with 53% excluding undecided. Sterling and the FTSE
may remain volatile through next week’s Scottish referendum.
US indices continue to retreat this morning, falling in a normal correction with little in the way of US news to keep their upward momentum going. Jobless claims were a bit worse than expected. The Dow is clinging to 17,000 by its fingernails while the S&P has slipped back under 1,990 and the NASDAQ remains stuck just below 4,100 with Apple sitting just above $100.00. European indices are soft today with the FTSE unable to capitalize on changing poll results to the same extent as Sterling.
Economic reports released overnight and this morning include:
NZ interest rate decision 3.50% no change as expected
US jobless claims 315K vs street 300K
Canada new house prices 1.4% vs street 1.6%
China consumer prices 2.0% vs street 2.2%
China producer prices (1.2%) vs street (1.1%)
Australia employment change 121K (yes really) vs street 15K and previous 0K
Australia full-time jobs 14K vs previous 15K
Australia part-time jobs 106K vs previous (15K)
Australia unemployment rate 6.1% street 6.3% and previous 6.4%
Australia inflation expectations 3.5% vs previous 3.1%
Germany consumer prices 0.8% as expected
France consumer prices 0.4% as expected
Sweden consumer prices (0.2%) vs street (0.1%)
Sweden unemployment rate 7.4% vs street 7.2%
Greece unemployment rate 27.0% vs street 27.1%
Economic reports due later today include:
10:30 am EDT US natural gas street 85 BCF