The Bank of Australia's rate decision is coming out Tuesday 4:30 GMT on the back of previous week's neutral indicators of steady 3.0% credit growth and a 3% drop in job vacancies. Australian business confidence grew and new motor vehicle sales stopped dropping (for now). China, Australia's biggest trade partner is facing a liquidity trap with recent explosions in credit. China claims to keep credit regulation strict while not cutting available credit.
Earlier today China's Producer Manufacturing Index declined slightly while their index of leading indicators edges up slightly.
Australia's AiG Performance of Manufacturing Index shot up 5.8 points in today's news; manufacturing tends to be highly sensitive to economic changes making it an excellent leading indicator. With that in mind, is a stronger economic expansion on the horizon?
WHAT TO WATCH:
AUD RBA Commodity Price Index
AUD RBA Commodity Index SDR (YoY)
AUD Reserve Bank of Australia Rate Decision (out tomorrow!)
AUD AiG Performance of Service Index
AUD HIA New Home Sales (May & June)
AUD Retail sales s.a (MoM)
AUD Trade Balance (Australian Dollar)
AUD Building Approvals (MoM & YoY)
AUD AiG Performance of Construction Index
If the Chinese economy stabilizes its growth and commodity prices rise, the bulls will run wild; however it will get stifled if American news is upbeat (manufacturing news especially).
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