Overnight, more disappointing economic data were released from china: industrial production dipped to 5.6% from 5.7%, falling below market expectation of 5.8%. Fixed asset investment data also indicates a fall in investment from 10.3% to 10.2% but retail sales was above market expectation of 10.9% to print at 11.0%. This data shows the Chinese economy is still under pressure and more monetary measures will have to be deployed to get the economy back on track.
Royal Bank of New Zealand last night that there might not be any need to introduce any monetary easing to the economy and also said the financial stability had increased in the dairy and housing sector. Kiwi gains some strength on the back of this note rising to 0.6588b against the USD.
Market will be looking out for economic data from the UK economy later today. Unemployment rate is expected to remain unchanged at 5.4%, average earnings excluding bonus is expected to drop to 2.7%, average earing index is expected to have increased to 3.2% from 3.0% while claimants count change is expected at 1.5k. a strong data today especially earning and unemployment data might actually increase the odds of a rate hike from Bank of England earlier than expected. It would be recalled that last week, the Bank of England highlighted that rate hike might come later in 2016 or 2017 due to poor economic outlook especially inflation rate. Bank of England Governor will also be speaking later today.
European central bank president will also be speaking later today, he might likely throw more light into the timing of the next quantitative easing of the ECB. Euro remains bearish trading below the 1.1000 level.