US Final GDP was better than feared
The US GDP reading for Q3 defied expectations, revealing 2.0% growth instead of the predicted 1.9%. Consumer spending remained strong, although inventories showed slightly smaller gains. The report also showed that consumer prices (excluding fuel and food) climbed faster than expected, relieving concerns about subdued inflation
Chinese PMI – it wasn’t so bad
While Forex traders will be waiting for non-governmental versions of Chinese PMI readings, the December manufacturing PMI actually showed a slim improvement, climbing from 49.6 to 49.7 (the non-manufacturing PMI climbed from 53.6 to 54.4).
The grim luck of the Loonie
With the latest figures for the Canadian economy all in the red and its GDP flat-lining in October after a 0.5% contraction in the previous quarter, the Loonie looked like it was in for a rough ride. Fortunately, there’s no need just yet for traders to make radical changes to their Forex trading strategies – the Loonie’s losses were capped after the US released its latest crude oil inventories, showing a 5.9 million drop in stockpiles. This news helped oil prices and the positively-correlated Canadian dollar bounce back after fears of oversupply eased.
NZ fares better than forecast
New Zealand enjoyed better news, with its economy showing a better-than-anticipated trade balance shortfall of 779 million NZD – well below October’s dismal 905 million NZD and better than the predicted 812 million NZD. An uptick in international and domestic demand was signalled by a growth in both imports and exports in November, with capital goods accounting for the lion’s share of total imports. As a result, declines in the value of crude oil purchases were offset. As far as Forex trading tips are concerned, a selloff of the NZD appears to have been averted
A mixed Forex bag for Japan
Meanwhile, in Japan, a mixed Forex picture emerged: spending data was disappointing, but CPI readings were better than forecast, coming in at 0.1% instead of flat-lining as expected.