{"id":145589,"date":"2019-04-11T08:15:30","date_gmt":"2019-04-11T12:15:30","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=145589"},"modified":"2019-04-11T06:45:16","modified_gmt":"2019-04-11T10:45:16","slug":"coming-up-canada-housing-and-nz-spending","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/04\/coming-up-canada-housing-and-nz-spending\/","title":{"rendered":"Coming Up: Canada Housing And NZ Spending"},"content":{"rendered":"
April 11, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Housing is one of the premier measures of real-world effects of monetary policy and changes in interest rates. It\u2019s also a gauge of disposable income. This is why traders are keeping an eye on the Canadian housing market since it often mirrors\u00a0the situation in the US<\/a>.<\/p>\n

Overnight we have electronic card transactions from New Zealand. Lately, this has been providing more volatility to NZD pairs. This is because it\u2019s sort of a replacement for consumer spending and confidence data that is only available on a quarterly basis.<\/p>\n

Canada Data<\/strong><\/h2>\n

There are two events that could move the CAD side of pairs today. The first is the\u00a0New Housing Price Index\u00a0<\/strong>coming out\u00a0at 14:30 CET (or 08:30 EST). Expectations are for this\u00a0to decline by another 0.1%\u00a0<\/strong>(it did the same last month).<\/p>\n

New house prices had been largely stable during the last year. However, they started to slip at the end in concert with the markets.\u00a0This is the opposite direction of the rest of Canada\u2019s outlook,<\/strong>\u00a0which increasing crude prices have largely supported since oil is Canada\u2019s major export. Rising borrowing costs are often cited to blame for lack of interest in housing, a sign of tightening in liquidity for housing.<\/p>\n

Liquidity will be of interest for traders following BOC\u00a0Sr. Deputy Governor Carolyn Wilkins<\/strong>\u2018 speech at\u00a0the World Bank later. We can expect her\u00a0to keep her hawkish stance.\u00a0<\/strong>The speech will begin at 19:00 CET (or 13:00 EST) and a text of the speech will likely be published just ahead of it.<\/p>

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If not, then there might be a delay for her remarks. And this would move market reaction forward. Note that we also expect Deputy Governor Lane to give a speech at the same event tomorrow. And the governor is likely to mirror Wilkin\u2019s comments.<\/p>\n

New Zealand Data<\/strong><\/h2>\n

The Kiwis also have two important events for the markets. These are the Manufacturing Index from BusinessNZ at 00:30 on Friday CET (which would be 18:30 on Thursday EST), and then 15 minutes later, electronic card transactions and visitor arrivals.<\/p>\n

The BusinessNZ index\u00a0<\/strong>is New Zealand\u2019s PMI. And expectations are for it\u00a0to remain quite firmly in expansion territory at 54.4.\u00a0<\/strong>This would be an\u00a0increase over the 53.7 registered prior. However, manufacturing is a relatively small component to the Kiwi economy, with most of the production targeted at the domestic market. Therefore, this also serves as another indicator of consumer demand.<\/p>\n

Next, we have the major event which is the\u00a0month over month electronic card sales.<\/strong>\u00a0Forecasts are for these\u00a0to increase by 0.7%\u00a0<\/strong>from the jump of 0.9% registered\u00a0last time around<\/a>. This data series has twice solidly outperformed market expectations, which have been a bit spooked with surprisingly bad performance in December.<\/p>\n

However, that seems to have turned out to be a one-off. Consumer sentiment has returned to the top end of the normal range. Part of that could be due to the raft of negative economic press during December, that has since changed. Despite the good month over month data, the\u00a0annualized rate remains below forecasts and at the middle of the usual growth range.<\/strong><\/p>\n

The\u00a0tourist season is winding down in New Zealand.\u00a0<\/strong>And this season saw\u00a0a record number of tourist arrivals despite the discouragement of travel from China due to internal economic issues. Tourist arrivals contribute a large share of foreign cash flows into the country, which typically help support the NZD.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Housing is one of the premier measures of real-world effects of monetary policy and changes in interest rates. It\u2019s also a gauge of disposable income. This is why traders are keeping an eye on the Canadian housing market since it often mirrors\u00a0the situation in the US. Overnight we have electronic card transactions from […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-145589","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=145589"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145589\/revisions"}],"predecessor-version":[{"id":145603,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145589\/revisions\/145603"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=145589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=145589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=145589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}