NZD Pressured With No Support Provided By Employment Data
The Hang Seng and ASX 200 are both negative on the session at -1.27% and -0.16%, respectively. The Nikkei 225, Topix and CSI 300 are all closed as Japan observes its Greenery Day and China its Labor Day bank holidays.
In the FX complex, it’s GBP and NZD leading to the downside, with little support provided by New Zealand employment data and despite reports suggesting that tomorrow’s BoE meeting could see a more aggressive hike of 50 basis points versus the current consensus of 25 basis points.
In contrast and leading to the upside are AUD and CAD as commodity prices claw back some of yesterday’s weakness; while AUD also finds some support from an impressive Retail Sales report of 1.6% m/m (exp. 0.4%). Consequently, GBPAUD has relinquished the 1.76 handle as EURCAD slips below the 1.35 handle.
Looking ahead, today’s European session will see the release of PMI reports throughout Europe, although the day’s main event will be the FOMC’s latest policy decision, late in the US trading session.
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