The Asian session has come with an increase in the NZD/USD major, as demand peaks after the New Zeeland CPI (Consumer Price Index) release. The qoq (quarter on quarter) CPI came out at 0.3%, with an expected value lower at 0.2% and a previous figure of 0.4%. The yoy indicator for the CPI came also better than expected, managing to reach the 0.4% mark after a forecasted 0.3%, equal to the prior yoy result. In the US session, the pair kept its ground, losing only marginally after the US CPI release. The expected 1.8% has been surpassed, the CPI coming in at 1.9% with a previously 1.8% reading. Traction for the NZD/USD came back as the market seems to work against a Fed rate hike this year, with Fed officials being unsure over the current economic layout.
Last week’s finale brought the Eurozone’s annual inflation with -0.1% for September, 2015. This comes after a 0.1% rise in August – final result as per Eurostat release. Comparing the results with 2014, last year’s September had a 0.3% increase in prices. In the current results, the impact came from restaurants and cafes (0.12 pp – percentage points), vegetables (0.11 pp) and tobacco (0.08 pp) for the positive outlook and transport fuel (-0.71 pp), heating oil (-0.25 pp) and eggs, milk and cheese (-0.06 pp) for the negative impact. As for the EUR/USD pair, excluding the correction lower from the 1.1500 zone, the week closed with gains.
The USD/CAD made the correction from the session’s peak near 1.2930, managing to settle in the 1.2900 support area. The advance has been put off after the Canadian Manufacturing Shipments’ contracts value came out lower than expected at a 0.2% mom (month on month) for the August period. Following the tone of the CAD, the oil prices also took a turn, seeking higher thresholds.
The Friday session started with oil prices near the $46.30/20 per barrel area, but the trend managed to break through and traded back around $46.60/65 per barrel. WTI’s (West Texas Intermediate) barrel managed to reach right under the $47.00 per barrel mark, but got slightly pushed back. The prices still remain defensive though, looking to cover more ground towards last Monday’s trading which topped around the $50.00 psychological mark. Looking forward, bullish attempts do appear rather limited as the supply glut slowly builds up steam. Also, there can be felt a renewed sentiment which regards the greenback.
