From Australia, yesterday morning, Home Loans figures were released, showing 1.5% increase, above expected one of 2.1%. The Australian dollar benefited from improved commodities and risk in the offshore session, supporting the local unit as traders begin to short the greenback. However, gains in the Australian dollar is unlikely to go much further as the local market begins further re-pricing of a Reserve Bank of Australia (RBA) rate cut risk if there is not a rebound in labor force data later in the week. Offshore risks will also weigh on the unit with traders eyeing Chinese economic activity data this week, while the greenback is likely to stabilize over the medium term once the U.S. Federal Reserve resumes its policy tightening.
Also, China CPI and PPI data was published. China’s consumer prices remained buoyant last month on surging food prices and factory-gate deflation moderated. The consumer-price index was at 2.3% in March from a year earlier, matching February’s level, as food prices jumped 7.6%. Producer price declines narrowed to 4.3% from a drop of 4.9% in February, and posted the first month-on-month increase since 2013.
On Tuesday, from Australia, NAB Business Confidence figures are scheduled for a release. Analysts are hoping for a better reading this month. There will be no data releases in the US part of the session.
Figures to watch:
NAB Business Confidence (Tuesday 3:30)
