Monday has been fairly quiet although the US$ is mildly firmer after having ignored a miss in the US factory orders, which fell by 0.6% on the back of lower demand for machinery, missing expectations for a rise of 0.3%. It seemed that traders preferred look to Friday’s solid jobs data for guidance.
In other markets, stocks have also traded on a firm note, with the major indices up by 0.4%/0.9%. The metals were pretty much unchanged, while the main volatility of the session of the day was seen in WTI, which at one stage fell from a new 2½ month high of 55.80 to a low of 53.35 before a partial recovery, to end Monday at 54.65, down 1.4% on the day. The fall came amid reports of swelling crude stockpiles and disappointing economic activity in the US.
Much of Asia remains closed again on Tuesday although it will be a big one for Australia, with the release of the Performance of Services Index, Retail Sales (exp -0.1%), Trade Balance (exp $2.3 bio) and RBA Interest Rate Decision. No change is expected but the RBA could well remove the “tightening bias” from the statement which would likely impact on a lower Aud$. The rest of the day will be spent focusing on the Services/Composite PMIs.
Economic data highlights will include:
Tue: Australian AIG Performance of Services Index, Australian Retail Sales, Trade Balance RBA Interest Rate Decision, EU Services/Composite PMIs, EU Retail Sales, US Services PMI, ISM Non-Mfg PMI.
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