Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.
Chinese Data Improving:
Chinese manufacturing data released over the weekend has shown improvement, supporting the global outlook, which had started to sour last week with falls across most of the major equities markets. As one Chinese economist suggests, it’s essentially showing a ‘stabilisation in the global economy’. In my opinion one data set can’t really do that, you need a series of data, and more will be out today in the Caixin Manufacturing PMI number at 12.45pm. AUD/USD nonetheless continues to be supported around current levels by higher commodities prices and marginally improved Chinese economic data.
Nab Business Confidence:
NAB Business Confidence and HIA New Home Sales figures are due for release this morning, no estimates are provided, however expect New Home Sales to continue to decline while business confidence might be boosted with an election around the corner.
Commodities prices remain relatively well bid, with Zinc and Iron Ore not too far off 12 month highs amid tight supply and low global stockpiles. The low AUD will continue to support miners bottom lines and should provide for some bumper profit figures when companies report around the middle of the year.
AUD EXCHANGE RATES:
AUD/USD – 0.7085
AUD/GBP – 0.5423
AUD/EUR – 0.6306
AUD/NZD – 1.0402
AUD/JPY – 78.701
All Ords (XAO) – 6,261
Gold – A$1,817/oz
Silver – A$21.27/oz
WTI – US$60.21/barrel
DATA RELEASES TODAY:
AUD – NAB Business Confidence & HIA New Home Sales m/m at 11.30am
CNY – Caixin Manufacturing PMI at 12.45pm
USD – Retail Sales m/m at 11.30pm
Sign up for a Compass account today and access some of the most competitive rates in the business and arguably the best service.
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
DISCLOSURE AND DISCLAIMER – GENERAL ADVICE WARNING
The information provided in this report has been prepared without taking into account your particular objectives, financial situation or needs. You should consider whether our products are appropriate for you and read the FSG and PDS which are available on this website.
This report and must not be copied, either in whole or in part, or distributed to any other person.
All references to prices, amounts and currency are in Australian dollars unless otherwise noted.
This report is provided for Australian residents only and is not intended for use by residents of any other country.