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NZ Business Confidence Plunges, Building Approvals Turn Negative New Zealand's Index of Business confidence weakened to negative 57.9 for the March period. This means that a net 58% of businesses expect business condition to deteriorate over the coming year. In a second report, building approvals fell back into negative territory in February, measuring a 6.5% drop from January's positive total. AUS TDMI Inflation at 4% Annually Annual Inflation in Australia remained at the fastest pace in almost two years in March, measuring 4% on the year. With the target rate for the central bank at 3%, the data shows that the central bank's may be correct in its recent rate increases. NZD/USD - Kiwi Falls on Data, Stocks
The New Zealand-US Dollar pair fell overnight, continuing a downtrend from the end of last week and down around 200 pips compared to Friday's levels. The kiwi was pressured by the weaker business confidence report as well as a fall in stock markets which sapped investor's risk appetite for carry trade. AUD/USD - Aussie Slips, Pressured by Poor Stocks
The Aussie-Dollar pair suffered a similar fate, falling to the 0.91 level in NY trading. Though the pair got a small bounce from the elevated inflation report, the Aussie was pressured in European trading by losses in Australian and European stock markets. JPN Manufacturing Falls Below 50, Annualized Housing Starts Decline 5% In Japan, the Manufacturing PMI declined to 49.5 and shows contraction in the sector for the first time in 5 months. Annualized housing starts for Feb declined 5%, undershooting expectations of a better improvement from January's 5.7% drop. JPN Industrial Production Down For A Second Month Japan's industrial production fell for a second straight month in February, declining 1.2%, preliminary data showed. On the bright side, the data was better than expected in both monthly and annual terms. EUR/JPY - Yen Down Despite Declines in Stock Markets
Against the Euro the Yen gave back most of its gains from Friday even as European stock markets faltered. Despite the poor performance in global stocks, the Yen was down overall against most of the majors.
EUR Consumer Prices Reach 3.5% Annual Rate
In Europe, the preliminary estimate for March's CPI rose to an annual rate of 3.5%. The ECB's target for annual inflation is 2%, so figures like these will be a positive factor for Euro strength as they make it difficult for the ECB to move to lower rates. EUR Sentiment Indicator Sags, While Business Conditions Improve The European sentiment indicator, a combination of consumer, services, and industrial confidence data slipped to 99.6 in March. The Business Climate indicator, a measure of business conditions, surprised forecasts on the upside. After decreasing for three months it registered a 0.80 in March. EUR/USD - Ranging Sideways with Test of New High
The Euro-Dollar pair traded within a pretty tight range today, continuing its sideways range from Thursday and Friday. There was a breakout to 1.5895 to test a previous high set on March 17th but from there the pair has been falling in the Dollar's favor. GBP/USD - Pound Continues to Fall vs Greenback
The Pound-Dollar pair continued its decline from Thursday, as the UK economy continued to be pressured by data showing poor growth in housing prices. The pair is down 350 pips since last Thursday's high. In a speech today, Bank of England Governor King said that policy makers face "a difficult balancing act" as they seek to shore up economic growth while battling inflation. Canadian GDP Rebounds, so Does US Chicago PMI Turning to North America, Canada's January GDP rose 0.6%, bouncing back from the 0.7% decline registered in December. Growth was broadly based, with wholesale trade and manufacturing leading the way. In the US meanwhile, the Chicago PMI rose to 48.2 in March, climbing from a six-year low of 44.5 last month. A fall in domestic spending was balanced by a surge in exports. Upcoming Releases The focus on fundamental data continues tonight as Japan releases it influential Tankan survey for the 1st quarter. Australia's central bank decides on rates though is expected to hold rates at 7.25%. Australia, and later the Euro-zone and the UK, will reveal their manufacturing PMIs. Also overnight, Germany will unveil data on retail sales and its unemployment rate. Tomorrow, Canada posts producer and raw materials prices while the US releases its ISM measure of manufacturing. |
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