I hope you all enjoyed the extra long weekend and you're all of course feeling pleasantly rested; personally it was certainly very nice to have a four day break after what has been a pretty busy start to 2017.
China was just one of a handful of nations including Japan that didn't stop for the Easter break with the former actually delivering the only economic data released yesterday. That data included both quarterly GDP numbers and industrial production figures. Both showed pretty positive signs with Chinese GDP seemingly on the rebound from lows seen back in the July quarter of 2016, while industrial production appears to be once again hitting its stride with the latest figures being the fastest pace of growth since Jan 2015. The numbers certainly bode well for the Chinese bulls out there and not so well for the Chinese perma-bears who predict a hard landing is the only way the Chinese growth story will end. I for one am a strong believer that China is destined for a soft landing, or rather smooth transition towards a more consumer led economy, but all this will pan out over the next 10 years at minimum.
Other than this data, we also saw U.S economic numbers Friday night which really disappointed but at the same time probably won't do a great deal to change the Federal Reserves rate tightening cycle it embarked on around a year ago. AUD/USD however has rallied marginally from lows seen last week.
DATA RELEASES TODAY:
AUD - Monetary Policy Minutes at 11.30am
USD - Building Permits at 10.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7537
AUD/GBP – 0.5992
AUD/EUR – 0.7081
AUD/NZD – 1.0772
AUD/JPY – 82.251
***Above rates are indicative wholesale rates and intended as a guide only***
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Senior Corporate FX Dealer
Phone Patrick - 0431 278 632