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NZD Steady Ahead of GDP Data

Published December 19, 2019

The New Zealand dollar made gains against the pound and euro overnight as Brexit fears return.

Canadian inflation rose to 2.2% in November, meeting expectations and increasing from 1.9% in the year to October with meat and fuel prices driving the increase. Core inflation seen as a better measure of underlying price pressure than the headline figure hit the highest reading in a decade and supported a decision by policy makers earlier this month to remain patient and leave interest rates unchanged despite a slowdown in growth.  The upbeat data strengthened the Canadian dollar.

German business sentiment rose more than expected in December, touching a six-month high. The IFO business climate index rose to 96.3 in December from a revised 95.1 in November, signaling Europe’s largest economy picked up momentum in Q4.

Focus turns to NZ GDP data released today at 10.45am, with economists predicting an annualized 2.4% for Q3, any big moves on this number will impact the NZD. Australian employment data is released at 1.30pm with 14K new jobs expected and unemployment forecasted to remain flat at 5.3%.  Bank of Japan meet later today with rates expected to remain steady.  Tonight, we have UK retail sales and the Bank of England rate decision, with expectations for rates to also remain on hold at 0.75%.