Conference Board US Consumer Confidence dropped to 84.8 in August, down from 91.7, missed expectation of 93.2. Present Situation Index dropped sharply from 95.9 to 84.2. Expectations INdex also dropped from 88.9 to 85.2.
“Consumer Confidence declined in August for the second consecutive month,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “The Present Situation Index decreased sharply, with consumers stating that both business and employment conditions had deteriorated over the past month. Consumers’ optimism about the short-term outlook, and their financial prospects, also declined and continues on a downward path. Consumer spending has rebounded in recent months but increasing concerns amongst consumers about the economic outlook and their financial well-being will likely cause spending to cool in the months ahead.”
New Zealand imports plunged -18% yoy in Jul, NZD/USD hovers in range
New Zealand’s goods exports dropped -0.2% yoy or NZD 9.8m to NZD 4.9B in July. Goods imports dropped -18% yoy or NZD 1.0B to NZD 4.6B. Trade surplus came in at NZD 282m, down from June’s NZD 475m, slightly below expectation of NZD 285m. Imports from all major trading partners expect China were down. On the other hand, exports to China and Japan decreased, while exports to USA, EU and Australia rose.
Full release here.
NZD/USD continues to hover slightly above 55 day EMA, drawing support from there. But at this point, correction from 0.6715 is still extended to extend lower. Firm break of the 55 day EMA would pave the way to 0.6385 support, and possibly to 38.2% retracement of 0.5469 to 0.6715 at 0.6239.