WEDNESDAY MORNING THOUGHTS

Highlights:

  • RBA- the Board decided to leave the cash rate unchanged at 1.50 per cent.
  • The NMI registered 51.4 percent in August, 4.1 percentage points lower than the July reading of 55.5 percent
  • GDT auction price index + 7.7%, recorded a third consecutive rise, August 16 is + 12.7%.
  • Equities, Oil and Silver higher besides dollar down across the board

What’s on today?

  • Australia 2Q GDP q/q basis 0.4% vs 1.1% and y/y basis 3.2% 3.1%. Data will be released on Wednesday 7 September at 11.30AEDT.

ANZ forecast: +0.4% q/q, +3.3% y/y

NAB forecast- Q2 GDP growth expected to ease to 0.3% in the quarter (down                         from 1.1%),Year-ended growth is expected to be steady at a solid 3.1% y/y

  • July German Industrial production forecast 1.8% vs 1.6% and y/y basis 0.2% vs 0.5%
  • August China Foreign exchange reserve
  • July UK Industrial production y/y forecast 1.8% vs 1.6%
  • July UK Manufacturing production m/m forecast -0.4% vs -0.3% and y/y 1.6% vs 0.9%
  • Bank of Canada interest Rate Announcement 9:00 – 10:00 (ET)
  • August UK NIESR GDP estimate
  • July US JOLTS openings

Prices as at Sydney time 8.00 AM Wednesday, 7 September 2016 (AEST)

com fx

 Fx market Wednesday trading range:

AUDUSD:  0.7760-0.7600

NZDUSD: 0.7500-0.7350

AUDNZD: 1.0300-1.0450

USDJPY: 101.50-102.70

USDCAD: 1.2750-1.2950

USDCHF: 0.9650-0.9760

USDSGD: 1.3350-1.3560

EURUSD: 1.1350-1.1180

GBPUSD: 1.3550-1.3300

EURGBP: 0.8300-0.8500

GOLD (Spot):  1360.00-1337.00

SILVER (Spot): 19.30-20.50

BRENT (Spot): 46.00-48.30

WTI (Spot): 43.50-46.00