There were no major data releases from Australia on Friday. Westpac's release on Friday said that the Treasury will downgrade economic forecasts. Budget deficit for 2015/16 will be revised higher by around $4bn to $39bn (-2.4% of GDP). Deficits for the following years will also be revised higher, for a four year deterioration of $36bn. According to Westpac forecasts will continue to anticipate a gradual narrowing of the deficit to around $19bn (-1.0% of GDP) by 2018/19, instead of the $6.9bn projected currently.
In the US session
PPI,
Retail Sales and Consumer Sentiment figures were released. The U.S. Census Bureau announced today that advance estimates of U.S.
retail and food services sales for November, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $448.1 billion, an increase of 0.2% from the previous month, and 1.4% above November 2014. Total sales for the September 2015 through November 2015 period were up 1.7% from the same period a year ago. The September 2015 to October 2015 percent change was unrevised from +0.1%. Retail trade sales were up 0.2% from October 2015, and up 0.7% above last year. Nonstore retailers were up 7.3% from November 2014 and food services and drinking places were up 6.5% from last year.
Separate report on the Producer Price Index for final demand showed that it increased 0.3% in November, seasonally adjusted. No change was expected. Final demand prices decreased 0.4% in October and 0.5% in September. On an unadjusted basis, the final demand index fell 1.1% for the 12 months ended in November, the tenth consecutive 12-month decline.The November rise in the final demand index can be traced to prices for final demand services, which advanced 0.5% In contrast, the index for final demand goods moved down 0.1%.
U.S. consumer sentiment inched up in December, but missed expectations, according to a report released on Friday. The Thomson Reuters/University of Michigan's preliminary December reading on the index was 91.8. That was higher than the previous month's reading of 91.3, but lower than expectations for 92.3. The index has average 92.9 this year, the highest since 2004, the report said. The data indicates that real consumer expenditures will grow by 2.8 percent in 2016 compared to 2015.
We can expect less volatile Monday's session as there will be no major data releases both from Australia and USA, and it is quite likely that traders are going to be cautious initially in the week ahead of Fed's interest rate decision on Wednesday.
