Markets Await January FOMC Meeting Minutes

Today’s Economic events

Australia MI leading index m/m 0.0% vs. -0.30% previously

Japan core machinery orders m/m 4.20% vs. 4.60%

UK Average earnings index 3m/y 1.90% vs. 1.90%

UK Unemployment rate 5.10% vs. 5.0%

Switzerland ZEW Economic expectations -5.9 vs. -3.0 previously

Canada foreign securities purchases -1.41bn vs. -6.05bn

US building permits -0.20% vs. -0.30%

US PPI m/m 0.10% vs. -0.20%; Core PPI m/m 0.40% vs. 0.10%

US housing starts m/m -3.80% vs. 2.0%

Coming up

The US Capacity utilization rate

The US industrial production

FOMC meeting minutes

New Zealand PPI

The Asian trading session remained mixed today as the Nikkei225 closed lower -1.36% while the Shanghai Composite gained 1.10% for the day. The Yen was trading stronger during the Asian session as USDJPY tested intraday lows to 113.52¥ before reversing the losses and trading stronger in the European session. At the time of writing, USDJPY is up 0.19% for the day, trading near the daily highs at 114.3¥. Data from Japan today included the core machinery orders which increased 4.20%, below estimates of 4.60%.

The commodity currencies are trading flat today. AUDUSD is up 0.06% after prices dipped lower to yesterday’s lows near $0.7088. The NZDUSD was also weaker in today’s trading, down -0.05% for the day, trading near $0.657. Yesterday, New Zealand GDT came out weaker at -2.80%, following a decline of -7.40% previously.

In the European trading session, the markets have been stronger. The German DAX is up 1.99% for the day including the FTSE100 which is up 1.66%. Data from Europe today included the Swiss ZEW economic outlook which declined to -5.9, down from -3.0 reading a month before in January. As a leading indicator, the ZEW economic expectation points to business outlook forecasts which look bleak as of the data released today. USDCHF is trading higher for the day on a stronger Dollar. The currency pair is up 0.39% higher for the day, trading at 0.992CHF.