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3 Apr 2014
Aussie dollar under pressure overnight, focus on ECB policy statement
FXStreet (London) - The Aussie dollar came under pressure overnight despite better than expected trade numbers, as well as a positive retail sales report.
Sales gains continue
Despite missing expectations of a 0.3 percent rise, the 0.2 percent increase in Australian retail sales in February marked the tenth-straight month of gains. Retail sales rose to a record AUD22.97bn (USD21.2bn), and follows a 1.2 percent leap in January.
Trade surplus data confounded some fears that weakening conditions in China would dent Australia’s exports. Australia’s trade balance came in at AUD1.2bn, beating the AUD850m consensus expectation, with exports to China up 32 percent year-on-year in February to AUD$8.2 billion.
The positive data helped to push expectations of an RBA rate hike into the first quarter of 2015, reducing demand for AUD overnight.
ECB statement the main focus of European session
The final reading of European March services PMIs come out this morning, but are unlikely to rock the boat ahead of the ECB’s decision and subsequent monetary policy statement and press conference later today.
Weaker headline UK services with positive outlook
In the UK, the Markit services PMI is expected to follow the trend of manufacturing and construction PMIs, with a slightly weaker headline number, but with a positive outlook from survey participants.
US non-manufacturing employment component under scrutiny
Expectations for US non-manufacturing ISMs are for a jump from 51.6 to 53.5. Under close scrutiny ahead of tomorrow’s non-farm payroll report will be the employment component after last month’s weak 47.5, driven down by disruptive US weather conditions.
Sales gains continue
Despite missing expectations of a 0.3 percent rise, the 0.2 percent increase in Australian retail sales in February marked the tenth-straight month of gains. Retail sales rose to a record AUD22.97bn (USD21.2bn), and follows a 1.2 percent leap in January.
Trade surplus data confounded some fears that weakening conditions in China would dent Australia’s exports. Australia’s trade balance came in at AUD1.2bn, beating the AUD850m consensus expectation, with exports to China up 32 percent year-on-year in February to AUD$8.2 billion.
The positive data helped to push expectations of an RBA rate hike into the first quarter of 2015, reducing demand for AUD overnight.
ECB statement the main focus of European session
The final reading of European March services PMIs come out this morning, but are unlikely to rock the boat ahead of the ECB’s decision and subsequent monetary policy statement and press conference later today.
Weaker headline UK services with positive outlook
In the UK, the Markit services PMI is expected to follow the trend of manufacturing and construction PMIs, with a slightly weaker headline number, but with a positive outlook from survey participants.
US non-manufacturing employment component under scrutiny
Expectations for US non-manufacturing ISMs are for a jump from 51.6 to 53.5. Under close scrutiny ahead of tomorrow’s non-farm payroll report will be the employment component after last month’s weak 47.5, driven down by disruptive US weather conditions.