From David Scutt, Treasury Dealer at Arab Bank, here’s a quick run-through of what the Australian market will be talking about this morning, including the dollar’s wild ride.
It’s Friday. Enjoy it.
– The ASX 200 looks set to start off today’s session deep in the red with SPI futures pointing to fall of 36pts on the open. While this reflects the deep losses seen on Wall St on the back of tapering fears, with commodity prices mixed and the Aussie Dollar firm, it wouldn’t surprise to see ‘bargain-hunting’ emerge today following the initial selloff.
– A wild ride for the AUDUSD overnight with the pair falling to as low of .9060 before screaming higher into the close. Given its resilience overnight, driven in part by short positioning and firm commodity prices, it wouldn’t surprise to see the pair continue to be well supported despite the looming threat of tapering from the Fed. Support is found at .9123, .9107 and again below .9080 with resistance arriving at .9140, .9155 and .9180.
– RBA Assistant Governor Guy Debelle speaks in Sydney from 11.30am. Given the title of his speech, ‘The impact of payments system and prudential reforms on the RBA’s provision of liquidity’, it’s unlikely it’ll have any implications for monetary policy.
– Chinese foreign direct investment for July will be released at 12 noon.
– Another US-centric data calendar to end off the week with housing starts, building permits, Q2 labour costs and productivity along with the Uni of Michigan consumer sentiment survey scheduled for release. Elsewhere we’ll receive manufacturing sales in Canada along with inflation, trade and current account figures from the Eurozone.
David Scutt is on Twitter.