- Chinese data weakens Australasian Dollars
- North Korean threats weakens Japanese Yen
By David Johnson
I hope you got some sleep in between meteor showers. This promises to be a busy week. The overnight news was actually busier than the day ahead, so let’s deal with that first. In New Zealand, retail sales were significantly stronger in Q2 than the forecasters expected. A 2.0% rise is comfortably higher than last quarter’s 1.5% and well above forecasts. Many are citing the Lion’s tour as the source of the extra spending; massive All Blacks jersey sales maybe. The NZ Dollar made some gains, but Chinese data was weaker than expected and China is very important to NZ exporters, so the GBP-NZD rate pushed back to levels we saw on Friday.
Staying in the antipodes, the Australian Dollar initially rallied after a speech by the Reserve Bank of Australia’s assistant governor, but dropped back again after that Chinese Industrial Production and Retail Sales data disappointed. We will get the Reserve Bank of Australia’s official view when their meeting minutes are published overnight tonight and Thursday’s employment data is expected to be positive.
We saw some reasonably positive Japanese economic growth data overnight, so the Yen should have strengthened, but the opposite was true. Fears over North Korea’s alleged ability to fly nukes over Japan are weighing on the Japanese Yen for obvious reasons.
The rest of today brings economic growth stats from Greece and Portugal but also what is forecast to be poor industrial production data from the Eurozone as a whole. A contraction on the month-on-month data is expected as the stronger Euro weighs on order books. The Euro had a strong showing last week but ought to give up some of those gains if the forecasts prove to be accurate. Preliminary economic growth data for the Eurozone will be published on Wednesday, so traders may sit on their hands until then. Tomorrow marks the Assumption Day holiday in many European states.
This afternoon brings a little bond market information from the US but very little else. The week ahead will offer up waves of retail, inflation and manufacturing data, as well a fair amount of central bank activity. It may be a bumpy ride.
And in a neat bit of social media publicity, there is a debate ‘raging’ on the interweb over how to pronounce Primark. Apparently many in Scotland and Northern Ireland pronounce it Preemark, whilst us southerners tend to pronounce it like Pry-mark. I hear it pronounced as Pry-mani more often than not. Just in case you were wondering, we tend to pronounce our company name like Hay-lo. If you would like to rage over the internet about that…fill your boots; we won’t stop you.
- My wife texted me to say she’s still missing me. But apparently a few more hours down the rifle range will sort that out.
- A small boy was ambulanced to hospital after eating eight plastic horses. Doctors say his condition is now stable.
- A wild pig farmer was killed this week. He was boared to death.
- There is music coming out of my printer. It’s jamming.
- I want to win the National Lottery just like my dada. He never won but he always wanted to.
- That Velcro, eh! What a rip off.
- If goods get damaged in transit, do they become bads?