30 Jun 2014
Key events on Monday - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, reviews the main events ahead for this Monday.
Key Quotes
"Australia's calendar today is relatively quiet before we head into the rest of the week. June TD-MI inflation gauge to be released at 10:30am Syd. May private sector credit, out at 11:30am, is expected to tick 0.4% higher as business advances but housing cools a little. Neither are market movers. In Japan at 9:50am Syd/8:50am local, May industrial production is likely to see order backlog down sharply, but a rebalance after the April plunge is likely."
"The main event tonight is the Eurozone June flash CPI. The previous print of 0.5% was the lowest since 2009. German harmonised CPI on Friday accelerated from 0.6% to 1.0%, reinforcing our 0.6% forecast for tonight. This should provide support for EUR and lessen pressure on the ECB. In the US, the June Chicago PMI is forecast to be slightly lower than last month, we expect 60.0 compared to 65.5. May pending home sales are seen to accelerate, from 0.4% to our forecast of 2.5%."
"Risk this week will be concentrated around Tuesday and Thursday. The key events this week are RBA meeting on Tuesday, as well as Asian and Europe PMIs and US manufacturing ISM. Australia retail sales will be released Thursday, as will non-farm payrolls as US markets are on holiday Friday."
Key Quotes
"Australia's calendar today is relatively quiet before we head into the rest of the week. June TD-MI inflation gauge to be released at 10:30am Syd. May private sector credit, out at 11:30am, is expected to tick 0.4% higher as business advances but housing cools a little. Neither are market movers. In Japan at 9:50am Syd/8:50am local, May industrial production is likely to see order backlog down sharply, but a rebalance after the April plunge is likely."
"The main event tonight is the Eurozone June flash CPI. The previous print of 0.5% was the lowest since 2009. German harmonised CPI on Friday accelerated from 0.6% to 1.0%, reinforcing our 0.6% forecast for tonight. This should provide support for EUR and lessen pressure on the ECB. In the US, the June Chicago PMI is forecast to be slightly lower than last month, we expect 60.0 compared to 65.5. May pending home sales are seen to accelerate, from 0.4% to our forecast of 2.5%."
"Risk this week will be concentrated around Tuesday and Thursday. The key events this week are RBA meeting on Tuesday, as well as Asian and Europe PMIs and US manufacturing ISM. Australia retail sales will be released Thursday, as will non-farm payrolls as US markets are on holiday Friday."