Lower Inflation Expectations Weigh on NZD, Anticipation Builds for US CPI Release
| Action Insight Daily Report 5-13-24 |
Lower Inflation Expectations Weigh on NZD, Anticipation Builds for US CPI Release |
New Zealand Dollar dips mildly as the new week began on a quiet note. This comes in wake of New Zealand weaker services data and the decline in short-term inflation expectations, which may provide some relief to RBNZ about the persistence of high inflation. However, the key question remains on the pace at which inflation will decline. Slower-than-expected disinflation ahead would still limited scope for RBNZ to initiate rate cuts within this year. Elsewhere in the currency markets, Australian and Canadian Dollars also softened, trailing Kiwi as the next weakest. In contrast, Euro and Sterling appeared stronger, followed by relatively steady Dollar, while Swiss Franc is mixed. But as side from the Aussie and Kiwi, most major currencies remained within Friday's range against each other... |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3641; (P) 1.3667; (R1) 1.3698; More... Intraday bias in USD/CAD remains neutral for the moment. On the upside, break of 1.3761 resistance will argue that correction from 1.3845 has already completed. Intraday bias will be back to the upside to resume larger rally from 1.3176 through 1.3845. However, sustained trading below 55 D EMA (now at 1.3630) will argue that whole rise from 1.3176 has completed already, and bring deeper fall to 1.3477 support next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:30 | NZD | Business NZ PMI Apr | 48.9 | 47.1 | 46.8 | | 23:30 | JPY | Overall Household Spending Y/Y Mar | -1.20% | -2.40% | -0.50% | | 23:50 | JPY | Current Account (JPY) Mar | 2.01T | 2.05T | 1.37T | | 05:00 | JPY | Eco Watchers Survey: Current Apr | 47.4 | 49.8 | | 06:00 | GBP | GDP M/M Mar | 0.40% | 0.10% | 0.10% | 0.20% | | 06:00 | GBP | GDP Q/Q Q1 P | 0.60% | 0.40% | -0.30% | | 06:00 | GBP | Manufacturing Production M/M Mar | 0.30% | -0.50% | 1.20% | | 06:00 | GBP | Manufacturing Production Y/Y Mar | 2.30% | 1.80% | 2.70% | 2.60% | | 06:00 | GBP | Industrial Production M/M Mar | 0.20% | -0.50% | 1.10% | 1.00% | | 06:00 | GBP | Industrial Production Y/Y Mar | 0.50% | 0.30% | 1.40% | 1.00% | | 06:00 | GBP | Goods Trade Balance (GBP) Mar | -14.0B | -14.5B | -14.2B | -14.1B | | 08:00 | EUR | Italy Industrial Output M/M Mar | -0.50% | 0.30% | 0.10% | 0.00% | | 11:40 | GBP | NIESR GDP Estimate (3M) Apr | 0.70% | 0.40% | | 12:30 | CAD | Net Change in Employment Apr | 90.4K | 17.5K | -2.2K | | 12:30 | CAD | Unemployment Rate Apr | 6.10% | 6.20% | 6.10% | | 14:00 | USD | Michigan Consumer Sentiment Index May P | 77 | 77.2 |
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