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1 Apr 2015
Busy Asian session liead ahead - Westpac
FXStreet (Bali) - A busy Asian session lies ahead, with Japanese Tankan, Australia's building permits and China's PMI reads the main events to monitor. Sean Callow, FX Strategist at Westpac, shares the bank's view on these events.
Key Quotes
At 11:30am Syd/8:30am Sing/HK we see Australian building approvals for Feb. Jan saw a startling 7.9% m/m jump, boosted by a large high rise development in Queensland and a strong seasonal adjustment factor. A decent retracement thus seems likely. We agree with the -4% m/m consensus.
The BoJ will release its Q1 Tankan survey at 10:50am Syd/8:50am Tokyo. The market is expecting improvement in both the manufacturing and non-manufacturing conditions and outlook, the weaker yen and stronger USD supportive.
In China, the official Mar PMI is out at 12pm Syd/9am local. This showed a smaller gain than the HSBC PMI in Feb, so should so see less of a pullback (median is 49.7 vs Feb’s 49.9). We also have the final HSBC PMI 45 minutes later. Indonesian Mar inflation numbers will also be released.
The fortnightly GlobalDairyTrade auction will be held in London/NY. Fonterra last week announced an increase in offer volumes so markets will be positioned for another fall in milk powder prices.
Europe final Mar PMI is expected to remain unchanged at 51.9. The US Mar ADP private payrolls is expected to print strongly, with the market median at 225k vs Feb’s 212k. The Mar manufacturing ISM should continue along its downtrend, after falling for the fourth month in Feb. The forecast is for a print of 52.5 after Feb’s 52.9. We will also see Feb construction spending, with weather to weigh on the already weak sector.
Key Quotes
At 11:30am Syd/8:30am Sing/HK we see Australian building approvals for Feb. Jan saw a startling 7.9% m/m jump, boosted by a large high rise development in Queensland and a strong seasonal adjustment factor. A decent retracement thus seems likely. We agree with the -4% m/m consensus.
The BoJ will release its Q1 Tankan survey at 10:50am Syd/8:50am Tokyo. The market is expecting improvement in both the manufacturing and non-manufacturing conditions and outlook, the weaker yen and stronger USD supportive.
In China, the official Mar PMI is out at 12pm Syd/9am local. This showed a smaller gain than the HSBC PMI in Feb, so should so see less of a pullback (median is 49.7 vs Feb’s 49.9). We also have the final HSBC PMI 45 minutes later. Indonesian Mar inflation numbers will also be released.
The fortnightly GlobalDairyTrade auction will be held in London/NY. Fonterra last week announced an increase in offer volumes so markets will be positioned for another fall in milk powder prices.
Europe final Mar PMI is expected to remain unchanged at 51.9. The US Mar ADP private payrolls is expected to print strongly, with the market median at 225k vs Feb’s 212k. The Mar manufacturing ISM should continue along its downtrend, after falling for the fourth month in Feb. The forecast is for a print of 52.5 after Feb’s 52.9. We will also see Feb construction spending, with weather to weigh on the already weak sector.