From David Scutt, Treasury Dealer at Arab Bank, here’s a quick run-through of what’s got the Australian market buzzing this morning, including more earnings and home sales data.
– Another busy session on the domestic earnings front with AGL, Transfield Services, Woolworths and Wotif.com just some of the better-known names that are scheduled to report.
– An ugly session for the ASX 200 awaits today, at least according to futures pricing, with SPI settling the overnight session down 55pts. While this is reflective of the sharp losses on Wall St, with precious metals and crude both sharply higher, coupled with moderate losses across the rest of the materials space, it wouldn’t surprise to see the index trim its losses over the course of the session. The caveat on this is of course no further escalation in geopolitical concerns surrounding Syria or a sharp selloff in Asia, particularly the emerging markets.
– Defying geopolitical concerns over Syria and another strong batch of US economic data, the AUDUSD has moved higher overnight with the pair currently sitting at .8986. Support is found at .8983, .8963 and again at .8930 with resistance kicking in at .9000, .9050 and .9069.
– Australian Q2 construction work completed will be released at 11.30am with economists looking for a rise of 1.6% following a 2% decline in Q1. While in the past this release has been overshadowed by the capital expenditure figures within the national accounts, given the RBA are looking for construction to offset the slowdown in mining-sector investment, expect this release to have a far greater market impact than what has been witnessed in the past.
– Data releases this evening include pending homes sales and MBA mortgage market index in the US, GfK consumer sentiment and import prices from Germany, retail sales from Italy and the UK along with eurozone private lending. On the policy front, Bank of England Governor Mark Carney will appear before the UK parliament, an event that will make for interesting viewing given the markets have largely dismissed the banks’ recently-implemented forward guidance on rates.
David Scutt is on Twitter.
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