The greenback is the best performing major currency so far Little action all around with ranges still relatively narrow. Though the US dollar is leading the rest of the major bloc as we await European traders to join the fray. The Australian dollar is the weakest currency – but not by much – retracing some…
Did we really expect anything else? The cash rate is held at 1.50% for a record 22 months. There wasn’t much in the statement either to change the outlook for the aussie. The only thing I can see is that they addressed global developments and mentioned that wage growth “may have troughed”.
CBA / Markit services PMI for May for Australia Services 55.9 – prior 55.2 Composite 55.6 – prior 55.3 ‘Key finding’: Australia’s services activity continued to grow markedly in May. New business inflows increased at a strong pace, encouraging firms to raise workforce numbers. Additional staff hires were also reported to have been one of…
International Monetary Fund has warned that CAD GDP is at risk More: – “economic anxiety is high due to trade tensions, uncertainty about the outcome of Nafta negotiations, and the impact of the U.S. [tax cuts] on Canada’s medium-term competitiveness” The Wall Street Journal has more:
Australian Industry Group (AiG) Performance of Services Index jumps 3.8 points in the month Not generally an immediate FX market mover Last week we got the two manufacturing PMIs, both dipping on the month:
Iranian nuclear official Kamalvandi says Tehran to inform UN atomic agency on Tuesday about start of uranium gas production capacity increase And the Iran nukes kerfuffle continues
NZ government 10 month update Surplus to be 159mio NZD higher than forecast NZD 3.41bn surplus in the 10 months through to April
ArticleBody British Retail Consortium (BRC) data for May 2018, Like for like sales +2.8% y/y – prior -4.2% Total retail sales values jumped+4.1y/y – vs. -3.1% in April Reuters with more:
Australia weekly consumer confidence from ANZ / Roy Morgan comes in at 116.5 Persistently high petrol prices is a negative for consumer sentiment.
Not a great indicator for the BOJ and administration …. – Overall household spending -1.6% m/m And -1.6% y/y (expected +0.8% y/y, prior -0.7%) While employment growth is strong the same cannot be said about wages – in real terms they are barely standing still. This is weighing on the consumer, as is ageing demographics.