Forex Today: NZD weakest in Asia, Eurozone CPI in focus

Despite risk-on at full steam in Asia this Thursday, the higher-yielding currencies such as the Antipodeans and pound failed to benefit and traded in the red zone, with the Kiwi having suffered the most on the back of a dip in New Zealand’s business confidence numbers. Markets also shrugged-off upbeat Chinese manufacturing PMI report, as broad based US dollar strength continued to drive the fx markets today.

Main topics in Asia

China’s August manufacturing PMI firmer, beats expectations

The official China manufacturing PMI for August came-in at 51.7, beating the consensus forecasts of 51.3 and 51.4 last. 

Australia's Q2 CAPEX: Headline at +0.8% vs. 0.3% expected

Australian capex (private capital expenditure) for Q2 shows a capex 'headline' of +0.8% q/q vs 0.3% expected and 0.9% last (revised from 0.3%). 

NZD/USD dumped to 0.7165 on weak NZ data, lowest since June

The NZD/USD pair extended its bearish momentum into a second day today, having run into strong supply just ahead of 0.72 handle to hit fresh two-month lows of 0.7164 last minutes.

BOJ’s Masai: Still some distance to achieving 2% inflation target

The Bank of Japan (BOJ) board member Takako Masai is out on the wires now, via Reuters, speaking at a meeting with business leaders in Ehime.

Key Focus ahead

The EUR calendar today holds a plenty of risk events, with the German retail sales release on the cards ahead of Europe open. The German and Eurozone employment data will be reported in the European session accompanied by the much-awaited Eurozone flash CPI estimate, which will provide fresh insights on the ECB’s next policy move. Besides, BOE MPC member Saunders is due to speak at Park Plaza Cardiff, in Wales.

In the NA session, we have the Canadian GDP report, alongside a slew of US macro releases, including the core PCE price index, personal spending and weekly jobless claims. Meanwhile, US Chicago PMI and pending home sales will be released subsequently.

EUR/USD - Risk Reversals turn negative, focus on inflation differential

EUR/USD confirmed a bearish Doji reversal on Wednesday as the upward revision of the US Q GDP and stellar Aug ADP employment report strengthened the demand for the US dollars and overshadowed the spike in German inflation to 4-month high. 

 GBP/USD - Will it rebound from 100-DMA?

GBP/USD weakened 0.10% in Asia to 1.2912. The dip below 100-DMA seen yesterday was short lived as the currency pair quickly recouped losses to end the day with moderate gains at 1.2924. The 100-DMA is seen today at 1.2906 levels. 

GBP/USD Forecast: traders uncommitted on Brexit uncertainty

Today's UK economic docket lacks any major market moving data and hence, traders would look forward to US macro releases for some fresh impetus.

Key data preview: US economy PCE deflator coming up - Nomura

Analysts at Nomura offered their outlook for the next key data for the US dollar and US economy that the Fed will be playing close attention to.