Today’s economic reports showed a mixed picture for the global economy.

In Germany, the ZEW Economic Sentiment gave a positive surprise. Its reading of 48.4 was better than the forecast of 40.1 and previous month’s reading of 34.9. This is a level of a diffusion index based on a survey of 275 German institutional investors and analysts. It is a leading indicator of economic health.The Euro Zone level ZEW Economic Sentiment at 45.2 was also better than the estimates of 37.6 and last month’s 31.8. A level above 0 indicated optimism and it is highly influenced by German data.

On the negative side was German PPI m/m, which disappointed at -0.7% versus -0.3% forecast and previous month’s 0.0%. It is a leading indicator of consumer inflation and is hinting deflationary pressures are building up.

The Italian Trade Balance at 3.4B was also below the expectations of 4.32B and previous month’s 5.4B.

Canadian Manufacturing Sales m/m at -1.4% was also below the forecast of -0.5% and previous month’s reading of -0.6%.

Australia’s Wetpac Consumer Sentiment was +2.4%, better than last month’s -5.7%. This is the change in the level of diffusion index based on survey of about 1200 consumers about the relative level of past and future economic conditions, employment and climate for major purchases.

New Zealand’s GDT Price Index was 1.0% but below last months reading of 3.6%. This is the change in average price of dairy products sold at auction. Since dairy is a major industry for the country, it has a strong impact on the currency.

New Zealand’s CPI q/q misfired and came below estimates: Actual of -0.2% versus 0.0% expected and +0.3% for last month. Deflationary pressures are at work. ForexLive is reporting that according to Westpac, Royal Bank Of New Zealand will keep rates on hold till June 2016.