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23 Apr 2015
Kiwi plunges on RBNZ & China, EZ PMIs, UK Retail sales to drive Europe
FXStreet (Mumbai) - The Antipodeans maintained an offered tone in Asia, with the NZD emerging the weakest performer amongst G10 currencies, while USD/JPY traded in a flat-lining around 120 handle awaiting fresh cues from a data-packed session ahead.
Key headlines in Asia
China's HSBC Manufacturing PMI hits 12-month low
RBNZ not considering rate hike, but rate cut not ruled out – RBNZ’s McDermott
Australian business confidence falls further in Q1 2015
NZD/USD sells heavily, breaks below 0.76
Dominating themes in Asia - centered on JPY, AUD, NZD
A lack lustre Asia, with Asian equities mostly muted on poor China PMI which came in at a 12-month low. While the US dollar continues to hold the ground across the board supported by better than expected US macro data re-igniting earlier rate hike expectations.
NZD/USD was heavily sold-off in Asia, knocking off the kiwi below 0.76 barrier on latest comments from RBNZ deputy governors stating that he does not see a rate hike scenario now, however, a rate cut may not be ruled out. More so, weak Chinese manufacturing sector activity report also weighed. AUD/USD also remains pressured after business confidence deteriorated as well as on China woes. USD/JPY trades dead flat around 120 levels, consolidating previous gains after US housing data boosted USD bulls.
Heading into Europe - centered on EUR, GBP
In a heavy EUR calendar ahead, a raft of flash
manufacturing and services PMI reading across the Euro area economies are likely to keep EUR, GBP traders busy. While retail sales volumes from the UK will also be closely watched, followed by UK public sector borrowings figures.
The flash manufacturing PMI for France is expected to rise to 49.4, up from 48.8. The flash services PMI for France should hold at 52.4. The prelim manufacturing PMI for Germany is forecasted to have risen to 53.1 from 52.8. While, Euro zone as a bloc’s manufacturing PMI is expected to print 52.6 versus 52.2 previous.
Fresh UK retail data are expected to show growth in total sales volumes slowed slightly m/m in March to a rise of 0.4%, down from 0.7% in February. Sales volumes excluding fuel are estimated to have eased to 0.5%, down from 0.7% in February.
We have a busy North American session as well, with a flurry of US macro data to be released including weekly jobless claims, new home sales and flash manufacturing PMI.
For further insights on EUR/USD, analysts at Ace trader note, “Whilst intra-day weakness in Asia suggests selling the single currency on recovery is favored, position traders can look to buy on next decline in anticipation of another rebound twd 1.0800 as Mon's low at 1.0660 is expected to hold ahead of a meeting of euro zone finance ministers on Fri.”
Key headlines in Asia
China's HSBC Manufacturing PMI hits 12-month low
RBNZ not considering rate hike, but rate cut not ruled out – RBNZ’s McDermott
Australian business confidence falls further in Q1 2015
NZD/USD sells heavily, breaks below 0.76
Dominating themes in Asia - centered on JPY, AUD, NZD
A lack lustre Asia, with Asian equities mostly muted on poor China PMI which came in at a 12-month low. While the US dollar continues to hold the ground across the board supported by better than expected US macro data re-igniting earlier rate hike expectations.
NZD/USD was heavily sold-off in Asia, knocking off the kiwi below 0.76 barrier on latest comments from RBNZ deputy governors stating that he does not see a rate hike scenario now, however, a rate cut may not be ruled out. More so, weak Chinese manufacturing sector activity report also weighed. AUD/USD also remains pressured after business confidence deteriorated as well as on China woes. USD/JPY trades dead flat around 120 levels, consolidating previous gains after US housing data boosted USD bulls.
Heading into Europe - centered on EUR, GBP
In a heavy EUR calendar ahead, a raft of flash
manufacturing and services PMI reading across the Euro area economies are likely to keep EUR, GBP traders busy. While retail sales volumes from the UK will also be closely watched, followed by UK public sector borrowings figures.
The flash manufacturing PMI for France is expected to rise to 49.4, up from 48.8. The flash services PMI for France should hold at 52.4. The prelim manufacturing PMI for Germany is forecasted to have risen to 53.1 from 52.8. While, Euro zone as a bloc’s manufacturing PMI is expected to print 52.6 versus 52.2 previous.
Fresh UK retail data are expected to show growth in total sales volumes slowed slightly m/m in March to a rise of 0.4%, down from 0.7% in February. Sales volumes excluding fuel are estimated to have eased to 0.5%, down from 0.7% in February.
We have a busy North American session as well, with a flurry of US macro data to be released including weekly jobless claims, new home sales and flash manufacturing PMI.
For further insights on EUR/USD, analysts at Ace trader note, “Whilst intra-day weakness in Asia suggests selling the single currency on recovery is favored, position traders can look to buy on next decline in anticipation of another rebound twd 1.0800 as Mon's low at 1.0660 is expected to hold ahead of a meeting of euro zone finance ministers on Fri.”