Forex Analysis for Tuesday 16th May 2017
Sunday saw a positive Retail Sales print in New Zealand (1.5% vs 1.1%). Also on Sunday, Russia and Saudi Arabia agreed to extend oil output cuts.
On Monday, Chinese Industrial Production missed (6.5% vs 7.0%).
Early today saw Australian Monetary Policy Meeting Minutes from May 2nd meeting state central bank judged rates are consistent with reaching sustainable growth and inflation target. The minutes stated that development in labour and housing markets warrant careful monitoring and that GDP is still expected to pick up to be slightly above 3% by H1 2018 as drag from mining investment dissipates and resource exports recover. (Newswires)
The USD continued down after Friday’s bad news and a suggestion in the Washington Post that Trump revealed classified information to Russian Foreign Minister Lavrov at their recent meeting. However, equities performed better, with the S&P500 and Nasdaq closing at all-time highs. The FTSE100 continued up beyond resistance. The Euro50 consolidates and the Japan225 gets stuck at 20,000 resistance. Aus200 dances with support and oil rises on the Russia/Saudi news. The EUR breaks out of the resistance zone and the JPY weakens. The GBP drops and we see consolidation within the commodity currencies with the NZD wedded to support.
GBP CPI y/y, EUR Flash GDP.
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