Morning Market Update – All Eyes on the Dollar

Asian Markets

Australia New Motor Vehicle Sales (YoY): -4.1% (February) versus the previous month’s value of -0.9%. Australia’s Consumer Confidence is moving slowly without any pace this month. The Westpac Bank and the Melbourne Institute’s survey revealed an index score of 99.7 from February’s reading. The Australian Bureau of Statistics said that the New Motor Vehicle Sales dropped by 2.7% in February.

Statistics New Zealand said on Wednesday that the current account deficit came up to NZ$1.599 billion in the fourth quarter of 2016. Apart from the primary income, the secondary income went up by NZ$236 million to an excess of NZ$68 million. The services surplus increased went up by NZ$174 million to an excess of NZ$1.208 billion.

The New Zealand NZ Balance of Payments Current Account for Q4 arrived at 2.335bn versus the expected value of -2.425bn. The People’s Bank of China set the USD/CNY pair at a value of 6.9115 versus the expected value of 6.9118. Scottish Social Attitudes support for Scottish independence is at its highest ever. Scottish voters backed up from voting and remained in the European Union by 62% to 38% in the Brexit referendum last year.

Other Markets

The Industrial Production released by the Ministry of Economy for Japan remained at -0.8%. However the (YOY) showed good results in recent times and is likely to continue with the same.

UK data Average Earnings excluding/including the bonus posted a low reading which should impact the pounds and make the pound grow weaker.

The Claimant Change released by the National Statistics presents that the number of unemployed people in the UK are the worst hit, making the pound to decline further. Greenback has major releases for the day and all eyes are set on the dollar. The question on everyone’s mind is whether the US economy will offer Federal Reserve’s rate hike. Even though expectations are already running pretty high for an FOMC interest rate hike, these events will obviously be more important than others in determining the near- term currency market direction (FOMC).

The Fed will release their hike and apart from that, they will release their usual statement comprising of new forecasts. Janet Yellen said that “A change in the interest rate expectations will have the strongest impact and can overshadow any forecasts.” Depending on the type of data received, the Fed will decide on how to interpret these data and release further statements.