Late on Wednesday markets got to know New Zealand’s trade balance. Early in the morning Haruhiko Kuroda was speaking about Japanese monetary policy. Today there is only some interesting data in the calendar, more details below!
New Zealand with negative trade balance
Trade deficit in New Zealand is a little higher and now is $3.4B. It was caused e.g. by drop of export in these branches:
- Consumer goods: -4.8%, now $12B
- Meat products: -15%, now $235M
At the same time there was increase of costs in few sectors what deepened the deficit. Below you can see highlights of the New Zealand’s trade balance:
Kuroda: Tries of weakening JPY will mean FX intervention
During Kuroda speech in front of Japanese parliament we heard a lot of similar postulates he has been saying for the last few months. What’s worth noticing?
- No need to change target for short term and long term interest rates
- Yield curve moves according to forecasts
- There is still a lot of JGB (Japanese Government Bonds) on the market to buy by BOJ
- BOJ will not reduce JGB position
- There is a risk that bonds will end eventually but not in the nearest time
- BOJ cannot buy foreign bonds because of current law
- Any try to weaken JPY should be taken as FX intervention
What are we still waiting for?
For next important data we have to wait until 1:30 PM (GMT). We will know US initial jobless claims and durable goods orders. An hour and half later there will be publication of US pending home sales:
