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13 Mar 2015
Key events going forward - Westpac
FXStreet (Bali) - The Westpac Global Strategy Group breaks down the key events for Friday, which presents a quiet calendar, while also having a look at the main data releases for early next week.
Key Quotes
"The calendar in the Australia/Asia session is empty. In the US, we have the University of Michigan consumer sentiment. This is expected to fall with higher oil prices and market interest rates weighing. We will also see the Canadian employment report."
"Event risk picks up again next week. On Monday we have RBA’s Debelle speaking at the KangaNews conference in Sydney. ECB’s Draghi will speak in Frankfurt. The RBA minutes, released Tue, should continue to weigh on AUD. The BoJ concludes its meeting; the press conference will be key with no change in policy expected."
"The GlobalDairyTrade auction will be of interest especially given the recent news on the milk poisoning threat. BoE minutes will be released on Wed, and we also have the outcome of the FOMC minutes, where the language of “patience”, with respect to the beginning of policy normalisation, is likely to be taken out. NZ Q4 GDP is out on Thu, as well as the SNB quarterly policy review."
"The strong reversal in the US$ yesterday feels as if it has further to run here. However we see this as a short term correction in a longer term trend. The FOMC is set to move a step closer to policy normalisation next week. Historically the US$ tends to gain ground into the first hike. With the ECB's QE policy in full swing, the EUR is the key here. 40% of eurozone debt of all maturity trades at or below zero yield. 6 months ago that was 17% of total eurozone."
"We are set to remain in a super low global yield environment for some time to come. Capital flight from the eurozone will be a key driver for this weaker EUR trend."
Key Quotes
"The calendar in the Australia/Asia session is empty. In the US, we have the University of Michigan consumer sentiment. This is expected to fall with higher oil prices and market interest rates weighing. We will also see the Canadian employment report."
"Event risk picks up again next week. On Monday we have RBA’s Debelle speaking at the KangaNews conference in Sydney. ECB’s Draghi will speak in Frankfurt. The RBA minutes, released Tue, should continue to weigh on AUD. The BoJ concludes its meeting; the press conference will be key with no change in policy expected."
"The GlobalDairyTrade auction will be of interest especially given the recent news on the milk poisoning threat. BoE minutes will be released on Wed, and we also have the outcome of the FOMC minutes, where the language of “patience”, with respect to the beginning of policy normalisation, is likely to be taken out. NZ Q4 GDP is out on Thu, as well as the SNB quarterly policy review."
"The strong reversal in the US$ yesterday feels as if it has further to run here. However we see this as a short term correction in a longer term trend. The FOMC is set to move a step closer to policy normalisation next week. Historically the US$ tends to gain ground into the first hike. With the ECB's QE policy in full swing, the EUR is the key here. 40% of eurozone debt of all maturity trades at or below zero yield. 6 months ago that was 17% of total eurozone."
"We are set to remain in a super low global yield environment for some time to come. Capital flight from the eurozone will be a key driver for this weaker EUR trend."