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 Virgin Australia earnings and the return of Abenomics.
– Tap Oil and Virgin Australia headline the domestic earnings calendar today.
– Despite gains in offshore markets overnight, the ASX 200 look set to kick off the day marginally in the red with SPI futures pointing to a fall of 14pts on the open. Despite large falls in commodity prices overnight, largely on the back of a stronger US Dollar and easing concerns over Syria, with the index up 0.8% so far in August, it wouldn’t shock to see month-end window dressing push the index into positive territory by the end of today’s session.
– The AUDUSD eased lower overnight on the back of stronger-than-expected US data with the pair touching a low of 0.8918 before inching higher into the close. While tapering expectations tend to drive the pair in offshore trade, with a raft of Japanese data releases scheduled for today, something that tends to determine overall USD strength, we expect the pair to have an inverse correlation to USDJPY, at least in the early parts of trade. Support starts at .8918, .8890 and .8850 with resistance kicking in at .8930, .8980-90 and against .9037.
– Australian private sector credit figures for July will be released at 11.30am. Markets are looking for a now-customary 0.3% increase following in 0.4% rise in June. As has been the case for well over a year, if there is to be another increase, it’ll likely derive from a rise in housing credit.
– Abenomics will be back in focus today with the release of CPI, household spending, housing starts and construction orders in Japan. Elsewhere we’ll also receive building starts in New Zealand along with the GfK consumer sentiment survey from the UK.
– No rest for the markets this evening with a busy data calendar scheduled to end off the week. In the US we’ll receive PCE inflation, a release that also encompasses both consumption and incomes data, Chicago PMI along with the final read on consumer sentiment from the University of Michigan. Alongside those numbers markets will also have to digest unemployment figures from the Eurozone and Italy, retail sales from Germany, Spain and Greece, Bank of England lending data and the Nationwide house price index from the UK, CPI and PPI figures from Italy along with Canadian GDP.
David Scutt is on Twitter.