There were no data releases from Australia yesterday. Stimulus programs from the PBOC helped lift Asian currencies. PBOC set USD/CNY central rate at 6.5060 vs. Monday at 6.5232. In Open Market operations, the PBOC injected 60bn yuan yesterday (via 7-day reverse repos). A much stronger yuan 'fix' today following the US dollar slipping in overnight trade.The Chinese Academy of Social Sciences (CASS) forecasted GDP growth in China at 6.8% for H1 of this year." The Aussie has received solid support in the last two months – surging 11 per cent – as commodity prices recover slightly and the greenback drops out of favor. The debate over whether the RBA is considering cutting interest rates continues.
In the US session CB Consumer Confidence figures were published. The Conference Board Consumer Confidence Index, which had decreased in February, improved in March. The Index now stands at 96.2 (1985=100), up from 94.0 in February. Analysts were anticipating reading of 93.9. The Present Situation Index declined moderately from 115.0 to 113.5, while the Expectations Index increased from 79.9 to 84.7 in March.
There will be no data releases from Australia tomorrow. In the US session ADP job figures will be published. Analysts forecast increase by 194,000.
Figures to watch:
ADP Non-Farm Employment Change (Wednesday 13:15)
