16 Jun 2014
Key events ahead - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, reviews the key events on the day, noting that only minor data will be published during Asia.
Key Quotes
"RBA Assistant Governor Chris Kent will speak on labour market developments at 1:20pm Sydney. In NZ, Q2 Westpac-MM consumer confidence printed at 121.2 after a nine-year high of 121.7 in March. The NZ May Performance of Services index will be released at 8:30am Syd/10:30 local, and after a 7 year high in April, risks are to the downside. In India, at 4:30pm Syd, May wholesale prices are expected to print at 5.4% after 5.2% in April; May CPI fell back from lower cereals and vegetable inflation."
"Calendar this week will be dominated by central banks. Last week BoE Governor Carney noted that "it could happen sooner than markets currently expects". So markets did what markets do and brought forward pricing. The BoE is now fully priced for first hike November. We don’t expect anything like this from the Fed, however markets will be tuned to the press conference, especially given that markets are showing signs of complacency. Note also the RBA minutes will be released Tuesday at 11:30am Syd, and we have both the June Bank of England MPC minutes and FOMC meeting on Wednesday plus the SNB on Thursday."
"The other factor that will be important is the situation in Iraq which remains dire as the country continues to be overrun by the extreme Sunni ISIS movement. Markets have handled this well so far but the situation remains tense with US aircraft carrier George Bush moving to within air striking distance. The situation in Iraq will continue to be a driver for risk sentiment this week though at least for the moment, oil refinery infrastructure is not at risk as much of this is in the south."
Key Quotes
"RBA Assistant Governor Chris Kent will speak on labour market developments at 1:20pm Sydney. In NZ, Q2 Westpac-MM consumer confidence printed at 121.2 after a nine-year high of 121.7 in March. The NZ May Performance of Services index will be released at 8:30am Syd/10:30 local, and after a 7 year high in April, risks are to the downside. In India, at 4:30pm Syd, May wholesale prices are expected to print at 5.4% after 5.2% in April; May CPI fell back from lower cereals and vegetable inflation."
"Calendar this week will be dominated by central banks. Last week BoE Governor Carney noted that "it could happen sooner than markets currently expects". So markets did what markets do and brought forward pricing. The BoE is now fully priced for first hike November. We don’t expect anything like this from the Fed, however markets will be tuned to the press conference, especially given that markets are showing signs of complacency. Note also the RBA minutes will be released Tuesday at 11:30am Syd, and we have both the June Bank of England MPC minutes and FOMC meeting on Wednesday plus the SNB on Thursday."
"The other factor that will be important is the situation in Iraq which remains dire as the country continues to be overrun by the extreme Sunni ISIS movement. Markets have handled this well so far but the situation remains tense with US aircraft carrier George Bush moving to within air striking distance. The situation in Iraq will continue to be a driver for risk sentiment this week though at least for the moment, oil refinery infrastructure is not at risk as much of this is in the south."