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2 Mar 2015
Key events on Monday - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, breaks down the key events to keep an eye on for the Monday session.
Key Quotes
"Today we have second tier data in Australia, with larger risk events to follow later in the week. The Feb TD inflation gauge at 10:30am. We see downside risks to the Q4 company profits and Q4 inventories (11:30am Syd/8:30am Sing/HK) versus market consensus. The Westpac forecast for inventories is -0.3% (market median 0.1%), which would have a -0.4ppt impact on Q4 GDP."
"Any revision to the HSBC version of Feb China PMI (12:45pm Syd/9:45am local) should be small. The preliminary print was at 50.1 and given the timing of lunar new year few late responses would have been submitted. Japan Q4 capital spending will be released at 10:50am Syd/8:50am local and will feed into the second estimate of GDP. We will also see PMI data from around Asia and Europe."
"In Europe, Feb advance CPI will be released. The market is expecting -0.5% y/y headline and 0.6% core, though this will not be as market sensitive as previously given the ECB has already set monetary policy for the upcoming months. We will see US Jan personal income and personal spending. The focus however will be the Jan core PCE deflator, the inflation measure watched by the Fed. While headline will be affected by low oil prices, the market is expecting core to tick higher to 0.1% m/m, with y/y holding steady at 1.3%. Feb US ISM manufacturing is forecast at 53.0, while Jan construction spending is expected have risen 0.3% m/m."
Key Quotes
"Today we have second tier data in Australia, with larger risk events to follow later in the week. The Feb TD inflation gauge at 10:30am. We see downside risks to the Q4 company profits and Q4 inventories (11:30am Syd/8:30am Sing/HK) versus market consensus. The Westpac forecast for inventories is -0.3% (market median 0.1%), which would have a -0.4ppt impact on Q4 GDP."
"Any revision to the HSBC version of Feb China PMI (12:45pm Syd/9:45am local) should be small. The preliminary print was at 50.1 and given the timing of lunar new year few late responses would have been submitted. Japan Q4 capital spending will be released at 10:50am Syd/8:50am local and will feed into the second estimate of GDP. We will also see PMI data from around Asia and Europe."
"In Europe, Feb advance CPI will be released. The market is expecting -0.5% y/y headline and 0.6% core, though this will not be as market sensitive as previously given the ECB has already set monetary policy for the upcoming months. We will see US Jan personal income and personal spending. The focus however will be the Jan core PCE deflator, the inflation measure watched by the Fed. While headline will be affected by low oil prices, the market is expecting core to tick higher to 0.1% m/m, with y/y holding steady at 1.3%. Feb US ISM manufacturing is forecast at 53.0, while Jan construction spending is expected have risen 0.3% m/m."