- U.S. headline PPI weaker than expected at -0.1%
- U.S. core PPI in line with expectations at 0.1%
- Australian gov’t says reaching a budget surplus by 2016 is unrealistic
- New Zealand Westpac consumer sentiment index up from 115.4 to 120.1
- Japan Tankan manufacturing index rose from 12 to 16
- Japan Tankan non-manufacturing index up from 14 to 20
- Chinese HSBC flash manufacturing PMI expected to improve
The Greenback seemed unfazed by weaker than expected producer prices data last Friday, as the currency managed to hold on to some of its recent gains against its major counterparts. Markets opened on a positive note this week, thanks to some developments over the weekend and stronger than expected Japanese data this Asian session.
Australian Prime Minister Abbott said that reaching a government surplus by their target schedule of 2016-17 is unrealistic. However, the Aussie’s losses were limited, thanks to a Morgan Stanley report saying that Australia will be an energy superpower by mid-2017.
Over the weekend, New Zealand released its consumer sentiment index and showed a significant improvement from 115.4 to 120.1, boosting NZD/USD back up to the .8250 area at the start of today’s Tokyo trading session. Japan also had it share of stronger than expected data, as the Tankan manufacturing index jumped from 12 to 16 while the non-manufacturing component rose from 14 to 20.
In the next few hours, we’ll see the results of HSBC’s flash manufacturing survey in China. The index is projected to rise from 50.5 to 51.0, indicating stronger manufacturing conditions. A higher than expected reading could confirm the recovery in China, which could help boost Aussie pairs.
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