Daily Forex Fundamentals | Written by CMS Forex | Jul 09 08 01:12 GMT |
NZ Business Confidence Starts at -64
In New Zealand, the latest Business Opinion Survey remained at -64 for the second quarter. The report points to a picture of stagflation as firm experience rising costs while domestic demand eases in the face of higher inflation and borrowing costs.
AUS Firm's Confidence Falls to 7 Year Low
In Australia, the NAB survey of business confidence fell to its lowest level in 7 years, measuring -9 in June a fall of 5 points from May. Firms say rising raw materials costs are cutting into profits, which is starting to affect employment.
JPN Eco Watchers Falls to 6 Yr Low
In Japan, economic conditions for merchants like taxi cab drivers, barbers and others that deal with customers, fell to a 6 year low. June's reading for the Eco Watcher survey fell to 29.5 as higher inflation curbs consumer spending, hurting business.
AUD/JPY - Ausse Slides vs Yen as Asian Stocks Weak
The Aussie-Yen pair fell for a second session overnight, touching 101.40, a 160-pip slide from its high yesterday. The Yen gained as a result of a fall in stocks in Australia and other Asian markets. European stocks were down as well, but the Yen gave up its gains starting 5-6AM.
NZD/USD - Kiwi Falls on Greenback Strength
The Kiwi-US Dollar pair tested the 0.7485 level, a slide of 100 pips from its open for the week. There was a move towards general Greenback strength in the middle of the European session as G8 leaders said rising oil and food costs pose a 'serious challenge' to the global economy. Oil prices receded, falling back to $135 a barrel at one point.
EUR/JPY - European Stocks Down Pressuring Euro, But Recover
The financial-sector led a broad decline in European stocks, as they fall to 3-year lows amid concerns about credit markets. This put pressure on the Euro-Yen pair and it hit a low near yesterday's support level at 167.20. Oil easing brought some life back into risk appetite, and the Euro managed to recover.
USD/JPY - Lower Oil and Bernanke Help Give Dollar Strength
The Dollar-Yen followed a similar path, as it drop overnight was stalled around 5 am EST and it rebounded to trade above its session open by noon time. US stocks were generally in the green. Ben Bernanke in a speech said the Federal Reserve should expand its role and supervise investment banks in order to prevent and limit financial market turmoil. He also said the bank may extend securities dealers' access to direct loans into 2009, helping shore up strength in US markets.
US Pending Home Sales Slip 4.7% in May
In the US, the pending home sales fell by a more than expected 4.7% for May. The decline continues to be very regional, and housing prices are very attractive to buyers. Sales are expected to be modest for the rest of the year. Construction activity is projected to be limited in the current economic environment, with the high inventory of homes and rising commodity prices.
US Inventories Rise 0.8% in May
Inventorires kept by US wholesale, the middleman between producer and retailers, rose 0.8% in May, matching expectations. Sales rose 1.6%, so the inventories-to-sales ratio declined to 1.08, continuing a trend of decline.
GBP/USD - Pound Recedes vs Dollar After Hitting 1.98
The Pound-Dollar slid 115 pips in the NY session after it had set an intra-session high at the 1.98 level. By 2 PM EST the Dollar had returned to 1.9680, the level it reached yesterday prior to the slide in US stocks. Traders pushed aside the home sales data from the US and focused more on Bernanke's comments, which helped the Dollar advance. The Dollar was also up on the Euro for the session.
Upcoming Releases
Tonight Australia posts its WMI consumer sentiment along with data on home loans. Japan reveals figures on machinery orders. Overnight Germany and the UK will release trade balance figures.
Tomorrow, Canada posts housing starts in a light fundamental docket for North America.
Hans Nilsson
Capital Market Services, L.L.C.
www.cmsfx.com
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