Global Economic data released through the Asian session this morning. It is limit to consumer sentiment figure out of Australia , and inflation expected number out of New Zealand.
The Aussie Dollar
The Westpac Consumer Sentiment Index rose by 4.3% in February ,Reversing January’s 4.7% slide. The index rose from January’s 99.6 to 103.8. Placing the index into the hands of the optimists.
Looking at the sub-Indexes, there were some major gains:
- Economic conditions next 12mths rallied by 7%, with family finances next 12-months (+5.5%).Ffamily finances vs a year ago (+5.6%) both seeing solid gains.
- Economic conditions next 5yrs rose by 3.8%. Lleaving it in the red year-on-year. The time to buy a major household item sub-index. Rose by just 0.3% to leave it down by 4.3% compared with a year ago.
- Negative sentiment towards the housing market . The time to buy a dwelling index fall by 1.9%. While still up by 8.6% compared with a year ago.
- The Unemployment Expectations Index fell by 2.9%. To take it into negative territory year-on-year.
The Kiwi Dollar,
While the RBNZ held rates unchanged as been forecasted. The outlook for growth was far more hawkish than the markets had expected. RBNZ Governor Orr’s statement delivered further strength for the Kiwi Dollar. The press conference coming after the release of the rate statement and monetary policy statement.
Economic data scheduled for release later this morning is limit to December. Industrial production numbers out of the Eurozone. Following some disappointing figures out of Germany. forecasts are for more disappointment that would likely pin back the EUR in the early part of the day.
Outside of the numbers, market risk appetite. in additional, updates on trade talks will continue to be the key driver mid-week.
It’s a big day on the data front. with January inflation numbers scheduled for release. Following disappointing GDP numbers released on Monday. the Pound could be in for another slide should the numbers be in line with or worse than forecast.
With Theresa May seeming to have come out of the cold. And also support for a deal seeming to build this week. The Pound may ultimately be able to brush off any softer inflation numbers. After all, the disappointing GDP numbers. should have already put the brakes on any hope of a 2019 rate hike. Assuming that Britain leaves the EU with a deal in hand.
Economic data scheduled for release includes January inflation numbers. that will have a material impact on the Dollar later today.
The focus will be on the annual core rate of inflation. which is forecasted to come in slightly softer at 2.1%. So, any deviation from forecast and expect a Dollar response
Outside of the numbers. expect more influence from Beijing and the Oval Office. The 1st March deadline is rapidly approaching. China’s Premier Xi is now also schedule to get involve at the end of the week to move things along.
There are no material stats schedule for release through the day. Crude oil prices will be the main driver through out the day. Upbeat sentiment towards the U.S – China trade talks have provided early support to risk sentiment. Giving the Loonie a positive start to the day.