Australia to publish key economic data

June 5, 2019

Another big day coming up for local markets on the back of yesterday’s interest rate cut by Australia’s central bank.

The EURUSD remained largely flat overnight, withstanding worse-than-expected inflation data. The pair opened at$1.12395 and climbed in early trading to a high of $1.12770. It gave up those highs and dropped to a low of $1.2250 a few hours later. The euro bounced off those lows in late trading and is currently at $1.12538. The GBPUSD re-entered $1.27 territory after a strong showing overnight. The pair opened the day at $1.26626 and was rather flat in early trading, dipping to a low of $1.26412 mid-session. The pound rallied off that low, peaking at $1.27139 late in the day. It has come off those highs and is trading at $1.27014.

The Dow went off to the races overnight, shaking off some insipid trading days of late. The index opened at 24,908.35 and dipped to a low of 24,821.07 early in the day. The Dow stayed muted for a few hours before surging for the rest of the day, peaking at 25,357.66. It has opened higher again and is currently trading at 25,383.57. The Dax enjoyed a strong showing, helped along by a rallying Dow. The German index opened at 11,738.30 and fell to an early low of 11,707.75. The Dax bounced off those lows, rallying to a high of 11,990.00 before closing at 11,984.39.

The day ahead shapes up to be another big one for Australia as it publishes crucial GDP data. On the back of weak economic data of late and the cut in interest rates yesterday, analysts are seeing a real slow down in the Australian economy, with some hinting at a recession not too far away. However, the economy is expected to grow by 0.4% for the quarter, up from 0.2% at the last reading.

Other data scheduled for release includes:

China – Caixin Services PMI

UK – Services PMI, MPC Member David Ramsden speaks

Canada – Labour Productivity

Europe – European, German and French Final Services PMIs, Italian and Spanish Services PMIs, European Retail Sales, European PPI

US – ISM Non-Manufacturing PMI, ADP Non-Farm Employment Change, Crude Oil Inventories, Final Services PMI, Beige Book, FOMC Member Michelle Bowman speaks


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