New Zealand Consumer Prices Rise 0.4% In Q2

Trading 17 juil 2018 Commentaire »

Inflation in New Zealand gained 0.4 percent on quarter in the second quarter of 2018, Statistics New Zealand said on Tuesday.

That was beneath expectations for 0.5 percent, which would have been unchanged from the previous three months.

On a yearly basis, consumer prices climbed 1.5 percent - again shy of forecasts for 1.6 percent but up from 1.1 percent in the three months prior.

The largest contributor to inflation was higher prices for housing and household utilities, up 0.9 percent on quarter and 3.1 percent on year.

In the quarter, construction prices in Auckland and Wellington rose 0.6 percent and 0.7 percent, respectively. For the rest of the North Island, prices were up 1.2 percent - twice as high as the major centers.

Rents rose 0.8 percent in the quarter and 2.5 percent in the year, while construction of new dwellings (excluding land) rose 1.1 percent on quarter and 3.9 percent on year. Electricity prices rose 1.7 on quarter and 2.9 percent on year.

"New Zealanders are paying more to keep their homes running," prices senior manager Paul Pascoe said. Rates, property maintenance services, and home insurance are all higher than they were this time last year."

Higher premiums, fire service, and earthquake levies across the year all contributed to an 18 percent increase in dwelling insurance in the year.

Petrol prices rose 3.2 percent on quarter, but this was countered by lower prices for used cars and home entertainment. Used car prices fell 3.3 percent, while subscriber TV and audio-visual equipment fell 7.2 percent and 15 percent, respectively.

"It was cheaper to buy a used car this quarter as dealerships looked to move some stock, but that was offset by higher running costs," Pascoe said. "With implementation of the regional fuel tax on 1 July, Auckland consumers will experience higher prices next quarter."

The national average price for a liter of 91 octane reached NZ$2.06 in June, with price movements varying across the regions. Wellington and the South Island had significantly higher inflation than Auckland and the rest of the North Island.


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BRAZIL: DI Rates Trade Slightly Lower On Domestic Economic Data, USD

Trading 17 juil 2018 Commentaire »

The one-day interbank deposit futures rates (DI rates) in Brazil are trading lower Monday, with shorter maturities' investors reacting to domestic economic data released earlier, while longer maturities are influenced by the U.S. dollar.

"The inflation figures are fine. I think the market is seeing that there should not be a rise in short-term interest, which impacts the shorter DIs. But at the same time, investors have an eye here and an eye in the U.S. dollar, which is rising," said Leme Investimentos partner and fixed income manager, Paulo Petrassi.

Getelio Vargas Foundation's General Price Index-10 (IGP-10) rose 0.93% in July, slowing down from the 1.86% rise recorded in June, while the Weekly Consumer Price Index (IPC-S) lost strength and rose 0.67% in the second reading of July, from 1.01%. Meanwhile, the Brazilian Central Bank's Economic Activity Index (IBC-Br) fell 3.34%, more than the 3.10% drop forecast by the market.

Despite the more benign inflation scenario, the U.S. dollar may put pressure on the DIs, especially the longer maturities, reflecting some caution regarding the domestic political scene.

Rafael Passos, an analyst at Guide Investimentos, said that the day is more negative for the global stock markets and that interest rates on U.S. Treasuries have some upward pressure despite a meeting between the Presidents of the United States and Russia, Donald Trump and Vladimir Putin, have not been negative.

Near the end of the session, the January 2019 DI contract rate was at 6.785%, from 6.82% in the previous settlement, while the January 2020 DI rate was at 8.19%, from 8.20%. The January 2021 DI contract rate was at 9.18, from 9.21%.


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New Zealand Inflation Gains 0.4% In Q2

Trading 17 juil 2018 Commentaire »

Consumer prices in New Zealand were up 0.4 percent on quarter in the second quarter of 2018, Statistics New Zealand said on Tuesday.

That was beneath expectations for 0.5 percent, which would have been unchanged from the previous three months.

On a yearly basis, consumer prices climbed 1.5 percent - again shy of forecasts for 1.6 percent but up from 1.1 percent in the three months prior.

The largest contributor to inflation was higher prices for housing and household utilities, up 0.9 percent on quarter and 3.1 percent on year.


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*BRAZIL: IBOVESPA FALLS 0.13%, TRADING AT 76,493 PTS

Trading 17 juil 2018 Commentaire »

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*BRAZIL: IBOVESPA TRADES SLIGHTLY LOWER

Trading 17 juil 2018 Commentaire »

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*CAR WASH: BRAZIL AND ARGENTINA CLOSES DEAL TO SHARE PLEA-BARGAIN DEALS

Trading 17 juil 2018 Commentaire »

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BITCOIN Analysis for July 16, 2018

Trading 16 juil 2018 Commentaire »

Bitcoin has been quite indecisive below $6,500 price area earlier which is being taken out with a daily candle currently. After the recent hack attack which injected insecurity among market participants, the price has been quite volatile which even made the price reside below $6,500 area for a certain period. Though there have been certain rumors about a ban on crypto trade in some countries, speculators assume the overall Crypto market to gain its pace by the end of July that could push BTC price much higher in the coming days. At present, the price is heading towards the Kumo Cloud which may act as strong resistance. However, if price manages to remain above $6,000-6,500 area with a daily close in the coming days, the bullish pressure is likely to push the price higher towards $8,000 in the future without much bearish intervention in the process.

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Fundamental Analysis of USD/JPY for July 16, 2018

Trading 16 juil 2018 Commentaire »

USD/JPY has been quite volatile and bearish in nature recently. The prive is expected to drop lower towards 111.00 support area in the coming days. Despite upbeat economic data today, JPY managed to sustain the bearish momentum it formed earlier.

Due to the observance of Marine Day, today Japan did not present any economic report. On Thursday, Japan's Trade Balance report is going to be published which is expected to increase to 0.15T from the previous figure of -0.30T and on Friday National Core CPI report is going to be published which is also expected to increase to 0.8% from the previous value of 0.7%.

On the USD side, today US Core Retail Sales report was published with a decrease to 0.4% as expected from the previous value of 1.4%, Retail Sales were slightly better than expected at 0.5%, decreasing from the previous value of 1.3% which was expected to be at 0.4% as well and Empire State Manufacturing Index report was also published with a better than expected figure of 22.6, decreasing from the previous figure of 25.0 which was expected to be at 20.3.

At present, JPY is quite optimistic ahead of the upcoming economic reports. It is expected to draw attention of the bears in the pair, leading to certain gains over USD. Traders took little notice of upbeat retail sales report from the US, so USD is trading slightly lower that may lead to further weakness in the coming days.

Now let us look at the technical view. The price is currently struggling at the edge of Channel Resistance above 112.00 area. As for the current formation, the price is expected to push lower as the current price is quite away from the mean of 20 EMA which may result to certain bearish pressure in the pair before pushing much higher in the future. As the price remains above 110.50 area with a daily close, the bullish bias is expected to continue in this pair.

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Fundamental Analysis of EUR/USD for July 16, 2018

Trading 16 juil 2018 Commentaire »

EUR/USD has been quite bullish the recent price action after a bounce off 1.1750 again recently. Despite the recent worse-than-expected economic reports, today USD gained good momentum amid expectations for upbeat economic data, while EUR is still struggling.

Today, Italian Trade Balance report was published with an increase to 3.38B from the previous figure of 2.99B which was expected to be at 3.25B and Trade Balance report was published with decrease to 16.9B from the previous figure of 18.0B which was expected to be at 17.6B.

On the other hand, today US Core Retail Sales report was published with a decrease to 0.4% as expected from the previous value of 1.4%, Retail Sales were slightly better than expected at 0.5%, decreasing from the previous value of 1.3% which was expected to be at 0.4%. Besides, Empire State Manufacturing Index report was also published with a better-than-expected figure of 22.6, decreasing from the previous figure of 25.0 which was expected to be at 20.3.

Menawhile, the trade war has been causing the market volatility nowadays which is expected to lead to uncertain momentum in the future. Though the US started the trade war, it's economy is also expected to suffer its consequences in the medium term. USD has been trading slightly better than expected in certain economic reports recently, while EUR has been quite mixed. USD is set to defend gains in the coming days. However, the question is still open how much endurance the momentum could hold.

Now let us look at the technical view. The price is currently residing at the edge of 1.1720-50 area from where it is expected to sink lower towards 1.1550 support area in the coming days. Though the price has been quite bullish since last Friday, USD has been outperforming EUR in light of economic data. The bearish pressure is expected to gain stronger. As the price remains below 1.1720-50 area with a daily close, the bearish bias is expected to continue.

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U.S. Dollar Falls After Soft China Data; Powell's Testimony Awaited

Trading 16 juil 2018 Commentaire »

The U.S. dollar slipped against its major counterparts in the European session on Monday, as China's economy expanded at a slower pace in the second quarter and investors awaited Fed Chair Jerome Powell's congressional testimony due this week for more clues about monetary policy outlook.

Data from the National Bureau of Statistics showed that gross domestic product expanded 6.7 percent year-on-year in the three months to June after growing 6.8 percent in the first quarter. Growth was in line with economists' expectations.

The pace of expansion was the slowest since the third quarter of 2016, when the economy grew 6.7 percent.

Concerns over trade war persisted, as China filed a complaint with the World Trade Organization against the U.S. plan to impose tariffs on Chinese goods worth 200 billion.

Powell will appear before the Congress on Tuesday and Wednesday, when he will discuss the state of the economy and monetary policy.

Data from the Commerce Department showed that U.S. retail sales increased in line with economist estimates in the month of June.

The report said retail sales climbed by 0.5 percent in June after soaring by an upwardly revised 1.3 percent in May. Economists had expected sales to rise by 0.5 percent compared to the 0.8 percent increase originally reported for the previous month.

Excluding a jump in auto sales, retail sales still rose by 0.4 percent in June following a 1.4 percent spike in May. The increase in ex-auto sales also matched economist estimates.

The currency has been trading in a negative territory against its major rivals in the Asian session, with the exception of the yen.

The greenback dropped to a 4-day low of 0.9969 against the franc, from a high of 1.0024 hit at 7:10 pm ET. On the downside, 0.98 is likely seen as the next support level for the greenback.

Reversing from an early high of 0.6758 against the kiwi, the greenback depreciated to a 5-day low of 0.6793. The greenback is likely to find support around the 0.69 level.

The latest survey from BusinessNZ showed that the services sector in New Zealand continued to expand in June, albeit at a much slower rate, with a Performance of Services Index score of 52.8.

That's down from the downwardly revised 57.1 in May.

The greenback slipped to a 5-day low of 1.1725 against the euro and a 6-day low of 1.3293 against the pound, coming off from its early highs of 1.1676 and 1.3225, respectively. The next possible support for the greenback is seen around 1.19 against the euro and 1.34 against the pound.

The greenback declined to 5-day lows of 0.7443 against the aussie and 1.3137 against the loonie, from its previous highs of 0.7409 and 1.3163, respectively and held steady thereafter. The greenback finished Friday's trading at 0.7422 against the aussie and 1.3153 against the loonie.

The greenback eased back to 112.27 against the yen, not far from its early 4-day low of 112.20. If the greenback continues its fall, 111.00 is possibly seen as its next support level.

The U.S. business inventories for May are due shortly.


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