A couple of light data points to move the session along
RBNZ today...
Good day, everyone! Hope you're all doing well as we look to get things going in the session ahead. It's been yet another lively start for markets with risk-off tones still reverberating while the RBNZ surprised markets with a 50 bps rate cut earlier today.
That sees the yen hold more firm amid weaker equities and bond yields, while the kiwi is hammered lower as RBNZ governor Orr also not ruling out negative rates at this stage. In the crossfire, the aussie is also brought lower with AUD/USD falling to a decade-low.
Looking ahead, risk sentiment is still the major factor at play right now and with the PBOC fixing the yuan barely below 7.00 per dollar, it's pretty much a signal that we should expect that level to be breached in the coming days - much like how they preempted a move above the 6.90 level on Friday last week.
0600 GMT - Germany June industrial production data
Prior release can be found here. Expectation is for the release to continue to show weakness in German factory/manufacturing activity and even a slight bounce here will do little to convince sentiment otherwise.
0645 GMT - France June trade balance data
Prior release can be found here. French trade in Q2 has been holding up decently despite global trade worries and that is reflected in the preliminary GDP report last week. The data here shouldn't reveal much else in that regard.
0700 GMT - Switzerland July foreign currency reserves
Prior release can be found here. With the SNB potentially stepping back into the market, perhaps we can get some clues from the release here moving forward. For now, it shouldn't be able to provide much indication of that - much like the weekly sight deposits data.
0730 GMT - UK July Halifax house prices data
Prior release can be found here. General indication of housing market sentiment in the UK. Not a major release by any means.
1100 GMT - US MBA mortgage applications w.e. 2 August
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week. Not the biggest of data points, but a general indicator of the housing sector sentiment.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading!
