Key Points This Week…

Key Points:

  • Worldwide coronavirus cases surpass 227.760 million with over 4.681 million official deaths.
  • New Zealand has 565 active cases of coronavirus with 13 new cases yesterday. Meanwhile, the Australian State of New South Wales reported 1351 new cases and 12 deaths yesterday with Victoria reporting 514 new cases.
  • NZ Manufacturing PMI Index for August down to 40.1 – prior 62.6 highlighting lockdown impacts across the country.  
  • Greenback jumps on strong Retail Sales report +0.7% in August.
  • National house prices rose 1.7% seasonally adjusted in August to 850,000 or 25.5% from August 2020. 
  • Crude Oil continues to surge above 72.00 per barrel as US supply shortages weigh heavy on logistics.

FX Update: Markets Consolidate Ahead of US CPI

Market Overview

Key Points:

• Worldwide coronavirus cases surpass 225.996 million with over 4.651 million official deaths
• New Zealand has 614 active cases of coronavirus with 33 new cases yesterday. Meanwhile, the Australian State of New South Wales reported 1257 new cases and 7 deaths yesterday with Victoria reporting 473 new cases.
• Vaccine passports are coming to NZ with New Zealanders required to have proof of covid vaccinations by Christmas.
• A 6.1 magnitude earthquake has been felt in Tokyo, Japan- no tsunami alert has been issued as yet.
• National house prices rose 3.0% in August to 850,000 or 25.5% y/y from 677,400.
• Crude Oil surges above 70.00 per barrel as US supply shortages weigh. Read more

Direct FX

Key Points This Week…

Key Points:

  • Worldwide coronavirus cases surpass 221.924 million with over 4.587 million official deaths.
  • New Zealand has 625 active cases of coronavirus with 13 new cases yesterday. Meanwhile, the Australian State of New South Wales reported 1405 new cases and 5 deaths yesterday with Victoria reporting 334 new cases.
  • Vaccine passports are coming to NZ with New Zealanders required to have proof of covid vaccinations by Christmas.
  • Japan set to extend their state of emergency in 19 regions to the end of September.
  • Retail Card Spending in NZ plunged -19.8% as the impact from lockdowns is felt.
  • DOW and S&P trades lower for the fourth straight day.
FX News

FX Update: Central Banks Take Centre Stage

Market Overview

Key Points:

• Worldwide coronavirus cases surpass 221.924 million with over 4.587 million official
deaths.
• New Zealand has 729 active community cases of coronavirus with 20 new cases yesterday. Meanwhile, the Australian State of New South Wales reported 1282 new cases and 5 deaths yesterday with Victoria 246
• Markets still predicts the RBNZ will raise rates at their October policy meeting
• With recent Bank of Canada negative turndown in GDP in the second quarter we are unlikely to see a taper of their bond purchases at tomorrow’s meeting
• UK inflation expectations out 1 year were unchanged at 3.1% but the bad news was the long-term forecast ticked up to 3.5% from 3.4% Read more

This Weeks Economic Releases

Tuesday 07/09
All Day, CAD, Bank Holiday
All Day, USD, Bank Holiday
4:30pm, AUD, RBA Rate Statement

Thursday 09/09
2am, CAD, BOC Rate Statement
3am, GBP, Monetary Policy Report Hearings
Tentative, CAD, BOC Press Conference
11:45pm, EUR, Monetary Policy Statement

Friday 10/09
12:30am, EUR, ECB Press Conference
4am, CAD, BOC Gov Macklem Speaks Read more

Key Points This Week

  • Worldwide coronavirus cases surpass 219.853 million with over 4.553 million official deaths.
  • New Zealand has 736 community cases of coronavirus with 49 new cases announced yesterday. Meanwhile, the Australian State of New South Wales had 1288 new cases yesterday with Victoria 176.
  • ANZ still predicts the RBNZ will raise rates at their October policy meeting
  • PM Johnson is to announce a tax hike next week in an effort to bring down NHS waiting lists.
  • The greenback is on the defensive breaking lower Friday ahead of US Non-Farm Payroll releasing.

FX Update: Kiwi Punching Higher Amid Covid

Market Overview

Key Points:

• Worldwide coronavirus cases surpass 217.777 million with over 4.522 million official deaths.
• New Zealand has 562 community cases of coronavirus with 53 new cases announced yesterday. Meanwhile, the Australian State of New South Wales had 1290 new cases yesterday with Victoria 76.
• Japan Industrial Production for July -1.5% m/m based on -2.5% expected.
• Japan’s Unemployment Rate for July came in at 2.8% – 2.9% expected.
• New Zealand Building Permits for July +2.1% m/m, 3.8% prior.
• The Pentagon announces completion of the US withdrawal of troops from Afghanistan.
• Hurricane Ida weakens out to a tropical storm with flash flooding continuing in Southern Louisiana and Southern Mississippi. Read more

Economic Releases

Monday 30/08
All Day, GBP, Bank Holiday

Wednesday 01/09
1:30PM, AUD, GDP q/q
Forecast 0.60%
All Day, All, OPEC Meetings
All Day, All, OPEC-JMMC Meetings

Thursday 02/09
12:15AM, USD, ADP Non-Farm Employment Change
Forecast 650K
2AM, USD, ISM Manufacturing PMI
Forecast 58.7 Read more