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31 Mar 2015
German retail sales, UK GDP & EZ CPI – In Focus
FXStreet (Mumbai) - The Australian dollar was the weakest performer for a second straight on increased bets of further RBA rate cut next week, with absolute US dollar dominance in Asia driving USD/JPY higher.
Key headlines in Asia
NZ business confidence ticked up in March - ANZ
Australia Private Sector Credit (MoM) in line with expectations (0.5%) in February
Australia Private Sector Credit (YoY) remains at 6.2% in February
Aussie under pressure on Iron ore decline
RBA to cut rates next week - Westpac
Dominating themes in Asia - centered on JPY, AUD, NZD
A low key affair in Asia, with upbeat NZ business confidence numbers reported and higher Asian equities on a weaker yen amid broad based USD strength. The US dollar extended its upward moves across the board supported by impressive US macro data released in the last North American session.
Entire Antipodeans complex extended their negative bias as the Kiwi largely tracked losses in its Oz neighbor following plunging iron ore prices and as markets begin to price-in further rate cut by RBA in its upcoming April meeting. USD/JPY was well bid above 120 handle, although the upside was capped by 20-DMA placed at 120.40 on weakness seen in treasury yields.
Heading into Europe - centered on EUR, GBP
A busy EUR, GBP calendar for traders, with German retail sales to kick-off the economic releases for the day, followed by Euro zone flash CPI and the much awaited UK Q4 2014 GDP numbers.
German retail sales data is due to be published at 5GMT with expectations of a decline of 0.7% m/m against a rise of 2.9% in January and German unemployment (consensus -12K, 6.5%). The Rabobank research desk believes, “the labor market is healthy but there is no major consumer boom going on as a result. Yet overall things look reasonably good: again, it’s remarkable what a drop in oil prices and a huge decline in the currency can do for you when you are an export-oriented economy."
The March Euro-Zone CPI report will be released, where the CPI Estimate is due at -0.1% y/y from -0.3% y/y, and the CPI Core is expected at +0.7% y/y unchanged.
We will also see the third estimate of UK GDP growth in the fourth quarter of 2014, with forecasts pointing to GDP growth of 0.5% quarter-on-quarter and 2.7% year-on-year. The UK GDP due in the next session is likely to be the next market mover.
Key headlines in Asia
NZ business confidence ticked up in March - ANZ
Australia Private Sector Credit (MoM) in line with expectations (0.5%) in February
Australia Private Sector Credit (YoY) remains at 6.2% in February
Aussie under pressure on Iron ore decline
RBA to cut rates next week - Westpac
Dominating themes in Asia - centered on JPY, AUD, NZD
A low key affair in Asia, with upbeat NZ business confidence numbers reported and higher Asian equities on a weaker yen amid broad based USD strength. The US dollar extended its upward moves across the board supported by impressive US macro data released in the last North American session.
Entire Antipodeans complex extended their negative bias as the Kiwi largely tracked losses in its Oz neighbor following plunging iron ore prices and as markets begin to price-in further rate cut by RBA in its upcoming April meeting. USD/JPY was well bid above 120 handle, although the upside was capped by 20-DMA placed at 120.40 on weakness seen in treasury yields.
Heading into Europe - centered on EUR, GBP
A busy EUR, GBP calendar for traders, with German retail sales to kick-off the economic releases for the day, followed by Euro zone flash CPI and the much awaited UK Q4 2014 GDP numbers.
German retail sales data is due to be published at 5GMT with expectations of a decline of 0.7% m/m against a rise of 2.9% in January and German unemployment (consensus -12K, 6.5%). The Rabobank research desk believes, “the labor market is healthy but there is no major consumer boom going on as a result. Yet overall things look reasonably good: again, it’s remarkable what a drop in oil prices and a huge decline in the currency can do for you when you are an export-oriented economy."
The March Euro-Zone CPI report will be released, where the CPI Estimate is due at -0.1% y/y from -0.3% y/y, and the CPI Core is expected at +0.7% y/y unchanged.
We will also see the third estimate of UK GDP growth in the fourth quarter of 2014, with forecasts pointing to GDP growth of 0.5% quarter-on-quarter and 2.7% year-on-year. The UK GDP due in the next session is likely to be the next market mover.