A steady stream of economic data and monetary policy fills the economy calendar on Wednesday. For traders of North America, the afternoon session will feature an important rate announcement from the Reserve Bank of New Zealand (RBNZ).

Action begins at 06:45 GMT with the release of French industrial production data. Factory production in the Eurozone’s second largest economy is forecast to rise 0.4% in March, compared with 1.2% the month before.

Spain will also issue industrial output figures 15 minutes later. The government in Madrid is expected to show annualized growth of 3.3% for March.

Italy will report on retail sales at 08:00 GMT. The report, which is seen as a key proxy for consumer spending, is expected to show growth of 0.1% for March.

Shifting gears to North America, the Mortgage Bankers Association will report on weekly mortgage applications for the period ending 4 May.

Later in the morning, the Department of Labor will issue its most recent producer inflation report. The producer price index (PPI) is forecast to rise 0.2% in April following a 0.3% uptick the month before. Compared to April 2017, PPI is projected to rise 2.8%.

Excluding food and energy, PPI is projected to rise 0.2%.

The Department of Commerce will report on wholesale inventories at 14:00 GMT. Thirty minutes later, the US Energy Information Administration (EIA) will report on crude inventories for the week ended 4 May.

Monetary policy speculators will also be keeping tabs on FOMC member Raphael Bostic, who is scheduled to deliver a speech at 17:15 GMT.

The RBNZ will deliver its policy verdict at 21:00 GMT, which corresponds with the morning session on Thursday in Oceana. However, North American traders can still observe the release. No change in policy is expected at this time. The central bank will hold a press conference one hour after the monetary policy statement is released.

EUR/USD

Europe’s common currency plunged deeper into correction territory on Tuesday, as prices fell toward the mid-1.1800 range. At the time of writing, EUR/USD was trading at 1.1848, where it was down 0.1% from the previous close. The pair is now holding on to critical support at 1.1820, the low from December.

GBP/USD

Cable briefly fell below 1.3500 on Tuesday before quickly rebounding later in the session to settle around 1.3550. Prices were down 0.1% during Asian trading, with key support still holding at the psychological 1.3500 mark.

NZD/USD

The rapid deceleration in the New Zealand dollar continued on Tuesday, with prices falling below 0.7000. At present, NZD/USD was trading at 0.6957 for a decline of 0.2%.  After breaking multiple supports, the pair’s new backstop appears to be 0.6880. On the upside, resistance will likely be met around 0.7000.