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10 Feb 2015
Australian business conf, China inflation eyed - Westpac
FXStreet (Bali) - Australian business confidence, together with China Jan CPI and PPI, will be the key events in Asia today, notes Sean Callow, FX Strategist at Westpac.
Key Quotes
"At 11:30am Syd/8:30am Sing/HK we see the Jan reading on Australian business confidence from NAB. The Dec survey (actually conducted in early Jan) saw the conditions index edge down to a still reasonable +4.1 while the confidence index was about flat, at +1.7. Businesses should have been pleased by lower oil prices and AUD but concerned about global conditions and local political turmoil."
"China Jan CPI and PPI will be released 12:30pm Syd/9:30am local. Both are expected to soften from last month’s print. The market median for CPI is 1.0% y/y v 1.5% in Dec given energy price falls. The consensus for PPI is -3.8% y/y v the prior print of -3.5%, with tiers of deflation through raw, then basic materials, capital goods and consumer durables."
"G20 finance ministers and central bank governors are due to conclude their meeting in Istanbul, which should at least generate some side comments to media. Australian treasurer Hockey did not make the trip due to the local leadership drama."
"In the UK we have Dec industrial production. The forecast is for another fall of 0.1%, after construction surprised to the downside in Nov, and oil and gas also weighed. Several second tier data releases are due in the US, including the Jan NFIB small business optimism and Dec wholesale inventories."
Key Quotes
"At 11:30am Syd/8:30am Sing/HK we see the Jan reading on Australian business confidence from NAB. The Dec survey (actually conducted in early Jan) saw the conditions index edge down to a still reasonable +4.1 while the confidence index was about flat, at +1.7. Businesses should have been pleased by lower oil prices and AUD but concerned about global conditions and local political turmoil."
"China Jan CPI and PPI will be released 12:30pm Syd/9:30am local. Both are expected to soften from last month’s print. The market median for CPI is 1.0% y/y v 1.5% in Dec given energy price falls. The consensus for PPI is -3.8% y/y v the prior print of -3.5%, with tiers of deflation through raw, then basic materials, capital goods and consumer durables."
"G20 finance ministers and central bank governors are due to conclude their meeting in Istanbul, which should at least generate some side comments to media. Australian treasurer Hockey did not make the trip due to the local leadership drama."
"In the UK we have Dec industrial production. The forecast is for another fall of 0.1%, after construction surprised to the downside in Nov, and oil and gas also weighed. Several second tier data releases are due in the US, including the Jan NFIB small business optimism and Dec wholesale inventories."