Asian week opening was a calmer one, despite solid NZ retail sales print and mixed Chinese data dump, as most majors traded in tight ranges amid a broad based USD consolidation after Friday’s downbeat US data-led sell-off. However, during mid-Asian trades oil prices and the Canadian dollar witnessed a sharp upward rally, following reports of Russia and Saudi Arabia favoring an OPEC output cut deal extension until March 2018. Meanwhile, Kiwi also held onto strong gains backed by above expectation NZ retail sales data.
Later today, amid a quiet economic calendar, focus will remain on the USD dynamics and Oil price-action, as investors gear up for an action-packed week ahead, with the UK CPI and S industrial production on tap.
Main topics in Asia
New Zealand Retail Sales (QoQ) came in at 1.5%, above expectations (0.9%) in 1Q
China data dump: Retail sales upbeat, industrial production disappoints
China’s retail sales YoY, came in in +10.7% vs 10.6% exp and 10.9% last, with industrial output YoY at 6.5% and 7.1% exp and 7.6% last.
N. Korea’s large scale heavy nuclear warhead landed in the sea near Russia on Sunday
Reuters out with detailed information on Sunday’s another ballistic missile test conducted by North Korea.
Russia, Saudi Arabia in favour of extending output cut deal to March 2018
As per the Bloomberg report, Russia and Saudi Arabia are in favour of extending the output cut deal to March 2018.
USD/CAD dumped to 1.3670 as Oil jumps +1.5% in Asia
The Canadian dollar rallied hard after latest headlines hit the wires on the OPEC output cut deal extension, knocking-off USD/CAD to daily lows of 1.3669.
Key Focus ahead
GBP/USD Forecast: any further up-move might now be capped at 1.2950 level
The pair built on Friday’s recovery move and has now moved back above the 1.2900 handle as focus shifts to this week’s important macroeconomic releases from the UK, including inflation figures and monthly employment report.
The week ahead: eyes on US IP (Tuesday) and other key global economic events
The week ahead in the US is holding a number of second-tier events, while greater risks come elsewhere from Euroland CPI, UK CPI, retail sales and labour force data, the RBA's minutes and Aussie unemployment data.
Disappointing data clouds dollar's near-term outlook - BBH
Analysts at Brown Brothers Harriman explained that softer than expected April US retail sales and consumer prices saw the dollar pare its gains ahead of the weekend.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD hold comfortably above 1.0750 as USD recovery loses steam
EUR/USD clings to small daily gains above 1.0750 in the early American session on Monday. In the absence of high-tier data releases, the US Dollar finds it difficult to gather recovery momentum and helps the pair hold its ground.
GBP/USD struggles to find direction, holds near 1.2550
GBP/USD stays under modest bearish pressure and trades near 1.2550 on Tuesday. The neutral risk mood, as reflected by the mixed action seen in US stocks, doesn't allow the pair to make a decisive move in either direction. The Bank of England will announce policy decisions on Thursday.
Gold rebounds to $2,320 as US yields edge lower
After falling to $2,310 in the early European session, Gold recovered to the $2,310 area in the second half of the day. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.5% and helps XAU/USD find support.
Ripple lawsuit develops with SEC reply under seal, XRP holders await public redacted versions
Ripple lawsuit’s latest development is SEC filing, under seal. The regulator has filed its reply brief and supporting exhibits and the documents will be made public on Wednesday, May 8.
The impact of economic indicators and global dynamics on the US Dollar
Recent labor market data suggest a cooling economy. The disappointing job creation and rising unemployment hint at a slackening demand for labor, which, coupled with subdued wage growth, could signal a slower economic trajectory.