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29 Jul 2014
Key events on Tuesday - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, reviews the day ahead on the FX market.
Key Quotes
"There is no fixed time for the Fonterra update on projected payments to farmers for milk solids in 2014/15. The last update was NZ$7/kg. Westpac looks for NZ$6.00 (equivalent to about -0.4% from GDP), though a slightly higher figure should be no great surprise. If there is a kneejerk bounce in the kiwi, it is unlikely to be sustained."
"Japan releases Jun unemployment and jobs/applicant data, then the Jun retail sales report. USD/JPY has been ignoring all Japan’s data releases while fixating on US data but it is still worth watching today’s releases for an update on the late Q2 reaction to the April consumption tax hike. Asia’s calendar is otherwise quiet."
"July consumer confidence from the Conference Board is the most market-sensitive US data release on Tuesday. Consensus is 85.5 vs 85.2 in June. Also due is the best measure of US house prices, from S&P/Case-Shiller. The median forecast is 0.3% m/m, 10% y/y on the 20 city index, which would leave prices still around -17% from the July 2006 peak."
Key Quotes
"There is no fixed time for the Fonterra update on projected payments to farmers for milk solids in 2014/15. The last update was NZ$7/kg. Westpac looks for NZ$6.00 (equivalent to about -0.4% from GDP), though a slightly higher figure should be no great surprise. If there is a kneejerk bounce in the kiwi, it is unlikely to be sustained."
"Japan releases Jun unemployment and jobs/applicant data, then the Jun retail sales report. USD/JPY has been ignoring all Japan’s data releases while fixating on US data but it is still worth watching today’s releases for an update on the late Q2 reaction to the April consumption tax hike. Asia’s calendar is otherwise quiet."
"July consumer confidence from the Conference Board is the most market-sensitive US data release on Tuesday. Consensus is 85.5 vs 85.2 in June. Also due is the best measure of US house prices, from S&P/Case-Shiller. The median forecast is 0.3% m/m, 10% y/y on the 20 city index, which would leave prices still around -17% from the July 2006 peak."