Eurostat released its retail sales data for the Eurozone on Wednesday. Retail sales in the Eurozone increased 0.3% in December, in line with expectations, after a flat reading in November. November's figure was revised up from a 0.3% fall.
Non-food sales increased 0.2% in December, food, drinks and tobacco sales rose 0.6%, while automotive fuel sales declined 0.1%.
On a yearly basis, retail sales in the Eurozone climbed 1.4% in December, missing forecasts of a 1.5% gain, after a 1.6% increase in November. November's figure was revised up from a 1.4% gain.
Non-food sales gained 1.8% year-on-year in December, gasoline sales decreased 0.8%, while food, drinks and tobacco sales rose 0.8%.
In 2015 as whole, retail sales climbed 2.4%.
- As expected the NZD/USD pair has kept moving downwards from the level of 0.6557. Yesterday, the pair dropped from the level of 0.6557 (this level of 0.6557 coincides with the double top) to the bottom around 0.6461. Today, the first resistance level is seen at 0.6546 followed by 0.6600, while daily support 1 is seen at 0.6503. According to the previous events, the NZD/USD pair is still moving between the levels of 0.6600 and 0.6503; for that we expect a range of 97 pips (0.6600 - 0.6503). If the NZD/USD pair fails to break through the resistance level of 0.6600, the market will decline further to 0.6546. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.6503 with a view to test the daily pivot point. On the contrary, if a breakout takes place at the resistance level of 0.6605 (the double top), then this scenario may become invalidated.
Intraday technical levels:
The material has been provided by InstaForex Company - www.instaforex.com
- R3: 0.6642
- R2: 0.6600
- R1: 0.6546
- PP: 0.6503
- S1: 0.6450
- S2: 0.6408
- S3: 0.6354
Bank of Japan (BoJ) Governor Haruhiko Kuroda said in a speech on Wednesday that there was no limit to monetary policy easing.
"If we judge that existing measures in the toolkit are not enough to achieve the goal, what we have to do is to devise new tools, rather than give up the goal," he said.
"I am convinced that there is no limit to measures for monetary easing. The Bank will continue to devote itself to innovation in monetary policy measures," Kuroda added.
He pointed out that the central bank could cut its interest rate further if needed.
The Australian Bureau of Statistics released its trade data on Wednesday. Australia's trade deficit widened to A$3.54 billion in December from A$2.73 billion in November, missing expectations for a decline to a deficit of A$2.5 billion. November's figure was revised up from a deficit of A$2.90 billion.
Exports decreased by 5.0% in December, while imports fell 1.0%.
In 2015 as whole, the deficit climbed to A$33.5 billion from a deficit of A$9.9 billion in 2014.
The Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler said in a speech on Wednesday that the interest rate cut is not "a mechanistic approach". But he noted that further policy easing could be needed if concerns about the global economy will deepen.
"If concerns deepen around the prospects for the global economy and its impact on New Zealand, some further policy easing may be needed over the coming year to ensure future average inflation settles near the middle of the target range," Wheeler said.
Kansas City Federal Reserve President Esther George said in a speech on Tuesday that the Fed should continue to raise its interest rate.
"My view is that the Committee should continue the gradual adjustment of moving rates higher to keep them aligned with economic activity and inflation," Kansas City Federal Reserve president said.
George noted that the monetary could not respond to every volatility in financial markets.
"Even looking at developments so far this year, financial markets have been quite volatile. While taking a signal from such volatility is warranted, monetary policy cannot respond to every blip in financial markets," she said.
George is a voting member on the Federal Open Market Committee (FOMC).
USD/JPY: 116.50 (USD 725m) 118.50 (1.69bln) 118.50 (570m) 119.00 (253m) 119.50 (291m) 121.00 (515m)
EUR/USD 1.0700 (EUR 342m) 1.0800 (571m) 1.0875 (704m) 1.0930-25 (325m) 1.1000 (435m)
GBP/USD 1.4300-05 (GBP 333m) 1.4500 (318m)
USD/CHF 1.1000 (USD 218m)
AUD/USD 0.7150 (359m)
USD/CAD 1.3800 (USD 515m) 1.4000 (160m) 1.4200 (760m)