Aussie Drifting Ahead of US GDPThe Australian dollar is almost unchanged on Friday, as the pair trades slightly above the 0. On the release front, The US will release two key indicators - Preliminary GDP and Uo. M Consumer Sentiment. As well, Fed chair Janet Yellen will deliver remarks at an event in Boston. There are no Australian releases on Friday. Traders should be prepared for possible volatility from AUD/USD in the North American session. We see the economy contracting by -1.7% y/y in Q3 and flattish in the fourth quarter. For the full year we expect a rate of -1.0% y/y, and very modest.First quarter numbers out of the US have been mixed, so Preliminary GDP, which can be treated viewed as an economic report card, will be closely monitored on Friday. Final GDP for the fourth quarter came in at 0. The estimate for Preliminary GDP stands at 0. US dollar could push upwards. The markets also have strong expectations for the Uo. M Consumer Sentiment report, with an estimate of 9. In April, this key consumer confidence indicator dipped to 8. November 2. 01. 4. Australian releases have been struggling this week, but the Australian dollar has managed to hold its own, trading at the 0. Construction Work Done, an important construction indicator, declined 2. This was followed by a very soft Private Capital Expenditure, which is also published every quarter. The indicator came in at - 5. With the RBA holding a policy meeting on June 7, key economic data will play an important role as to whether the RBA cuts rates for a second straight month or remains on the sidelines. The Fed minutes have renewed speculation that the Fed may press the rate trigger in June, and this has bolstered the US dollar. The minutes were more hawkish than expected, resulting in strong volatility in the currency markets. Odds of a rate hike in June increased to 4. Still, the Fed will be hard- pressed to raise rates if key indicators don't show improvement, particularly inflation numbers. On Monday, FOMC member John Williams reiterated that he expected the Fed to raise rates two or three times in 2. However, there appears to be a gap between the hawkish message some FOMC members are sending out and market sentiment, as many analysts are projecting only one rate hike this year. The guessing game as to what the Fed has in mind is likely to continue into June, but it's safe to say that another rate move will be data- dependent, so stronger US numbers will increase the likelihood of a quarter- point hike at the June policy meeting. Janet Yellen's speech on Friday will be closely watched. Will she reinforce the hawkish tone of her FOMC colleagues, or well she dampen growing enthusiasm about a June move? Opportunity Ahead - Download From Over 50 Million High Quality Stock Photos, Images, Vectors, Stock Footage. Sign up for FREE today. Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma-which is living with the results of other people's thinking. From what Naruto could recall from the many hours leading up to his current predicament.
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