Wednesday features economic indicators from all over the globe, with British Trade Balance, Federal Budget Balance, Final GDP from Japan and a rate decision in New Zealand as the top indicators.
Australia starts the day with the important figure of Home Loans expected to rise by 4%, less than 6.4% in the previous month.
In the morning, Germany will get attention: German Factory Orders are expected to fall by 1.9%, slowing the dive of 6.9% last month. Also PPI will be released in Germany – drop of 0.1% is expected.
In Britain, the Pound may deepen its falls against the Euro and the dollar after the Trade Balance will be released. A deficit of 7.5B is expected, similar to last month’s deficit.
In the American scene, Obama’s stimulus plan is expected to be reflected in the Federal Budget Balance: a huge deficit of $200 billiion is expected, much much more than last month’s deficit of $83B.
And near the end of the day, the Royal Bank of New Zealand is expected to cut the interest rate. Expectations move from a 50bp cut to 75bp cut. Current rate in New Zealand stands at 3.5%.
Any of these predictions will take the kiwi rate below the aussie rate. This could trigger further bullish momentum in the AUD/NZD. The RBNZ will issue an official Rate Statement, and will also hold a Press Conference open for questions.
And just before you think it’s over, Japan will update the GDP. Final GDP for the fourth quarter is expected to be updated to -3.5%, after a Prelim GDP figure of -3.3%. Maybe this devastating updated GDP in Japan will send USD/JPY above 100, a move anticipated for a long time.
Happy Forex Trading!
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