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17 Mar 2014
Flash: What to expect the day ahead - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, walks us through what to expect in terms of fundamentals for today.
Key Quotes
"Australia’s data calendar is effectively empty this week. Regionally, we will see Feb Singapore exports, expected to recover to around 8% y/y after the disappointing -3.3% y/y reading in Jan. The main focus will be on CNY, to see whether the PBoC wants to stoke more volatility with a high USD/CNY fixing. Friday’s fixing was 6.1346, while spot closed up 0.2% at 6.1499."
"The European focus will be overwhelmingly on the EU response to Russia and Crimea though there will also be further negotiations between the Greek government and the EC/IMF/ECB “troika” on the next bailout tranche."
"The US data calendar is very crowded, kicking off with the Mar Empire State manufacturing index from the NY Fed. Consensus is +7 after +4.5 in Feb which was seen as a weather-dampened reading given +12.5 in Jan, yet Q4 averaged just +2. Feb industrial production will be noteworthy too, with energy production presumably helping the headline but manufacturing activity more important. Jan capital flows data (TIC data) is also due."
"Perhaps most important of all is the Mar NAHB housing market index. The headline index tumbled from a fairly healthy 56 in Jan to just 46 in Feb (% of homebuilders reporting good conditions). Presumably the snowstorms were the main driver of such a dramatic fall yet the details included a fall in the outlook for sales as well as current business, plus a sharp fall in the west, where drought is the weather challenge."
Key Quotes
"Australia’s data calendar is effectively empty this week. Regionally, we will see Feb Singapore exports, expected to recover to around 8% y/y after the disappointing -3.3% y/y reading in Jan. The main focus will be on CNY, to see whether the PBoC wants to stoke more volatility with a high USD/CNY fixing. Friday’s fixing was 6.1346, while spot closed up 0.2% at 6.1499."
"The European focus will be overwhelmingly on the EU response to Russia and Crimea though there will also be further negotiations between the Greek government and the EC/IMF/ECB “troika” on the next bailout tranche."
"The US data calendar is very crowded, kicking off with the Mar Empire State manufacturing index from the NY Fed. Consensus is +7 after +4.5 in Feb which was seen as a weather-dampened reading given +12.5 in Jan, yet Q4 averaged just +2. Feb industrial production will be noteworthy too, with energy production presumably helping the headline but manufacturing activity more important. Jan capital flows data (TIC data) is also due."
"Perhaps most important of all is the Mar NAHB housing market index. The headline index tumbled from a fairly healthy 56 in Jan to just 46 in Feb (% of homebuilders reporting good conditions). Presumably the snowstorms were the main driver of such a dramatic fall yet the details included a fall in the outlook for sales as well as current business, plus a sharp fall in the west, where drought is the weather challenge."