It was a day of consolidation for many markets today with traders taking the time to digest the big swings
of recent days. Markets had been waiting for FOMC minutes which turned out to be a non-event with no major surprises. The US central bank remains on track for one rate hike this year, keeping a bid under USD relative to pretty much everything but performing particularly well relative to JPY and EUR today.
The biggest action of the day was in GDP which staged a solid rebound against USD, EUR and JPY after four days of heavy selling left it really oversold. UK PM May agreeing to give Parliament input into the government’s Brexit negotiating strategy took some of the pressure off the pound.
Stocks, meanwhile continued to sag under the USD, sinking oil and energy stocks and earnings headwinds. An earnings beat from railroad CSX after the close didn't provide any help.
An increase in US ADP inventories late in the day, however sent oil lower and could impact trading in energy stocks and miners in Australia today. Asia Pacific stocks and commodities may also be active around this month’s China trade numbers. Ahead of that news a number of New Zealand economic reports could have the Kiwi Dollar (NZD) hopping as traders continue to speculate on whether or not the RBNZ may have to cut interest rates again this year.
CSX $0.48 vs street $0.45
Significant announcements released overnight include:
ADP US Crude Oil Inventories 2 7 mmbbls
NZ REINZ house sales (9.5%) vs previous (3.1%)
The only other major announcement today was FOMC Meeting Minutes
Upcoming significant economic announcements include:
(Note: 11:30 am in Sydney/Melbourne is currently 1:30 pm in Auckland, 4:30 pm in Vancouver, 7:30 pm in Toronto/Montréal, 12:30 am in London and 8:30 am in Singapore)
8:30 am AEDT NZ Business NZ manufacturing PMI previous 55.1
8:45 am AEDT NZ Food Prices previous 1.3%
11:00 am AEDT NZ ANZ consumer confidence previous 121.0
12:00 pm AEDT China Trade Balance $53.0B
12:00 pm AEDT China imports street 0.6%
12:00 pm AEDT China exports street (3.3%)
7:00 am BST Germany consumer prices street 0.7%
8:30 am EDT Canada new house prices street 2.8%
8:30 am EDT Canada Teranet house prices previous 11.4%
8:30 am EDT US jobless claims street 253K
10:30 am EDT US natural gas
11:00 am EDT US DOE oil and gasoline inventories
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