The New Zealand dollar was under pressure amid weak GlobalDairyTrade auction results. Prices for whole milk powder fell 3.8%, despite the fact that market participants expected a decline by 2%. It should be noted that milk is the largest export item in New Zealand and has an impact on the New Zealand dollar.
The Australian dollar rose on more positive than expected retail sales data. Retail sales in Australia rose 0.4% in August, above economists’ forecast of 0.2% and is much higher than July (0.0%). This was reported today by the Australian Bureau of Statistics. The volume of retail sales in September supported by steady growth in employment and an improvement in consumer confidence. Retail trade turnover grew by 0.1% in August 2016 after the 0.1% rise in July 2016. Compared with August 2015 trends grew by 2.6%
The euro rose against the dollar on controversial news that ECB may be gradually reduce the QE program. The paper, citing unnamed sources in the leadership of the ECB said that the central bank “emerging consensus” on the taper of quantitative easing.
During the Asian session, the dollar has stabilized a bit after yesterday’s growth against the more optimistic prospects of higher interest rates in the US. Yesterday the president of the Federal Reserve Bank of Cleveland, Loretta Mester called for higher interest rates. “A slight increase in rates is justified, taking into account the progress in creating jobs and increasing inflation”, – said Mester, adding that rates could be increased at any of the two remaining Fed meetings.
EUR / USD: during the Asian session, the pair rose to $ 1.1230
GBP / USD: during the Asian session, the pair was trading in the $ 1.2720-40 range
USD / JPY: during the Asian session, the pair was trading in Y102.65-90 range
The post Asian session review: NZD under pressure appeared first on forex-analytics.press.