There were no major data releases from Australia yesterday morning. Aussie was supported as iron ore prices gained and the new stimulus program from the PBOC helped lift commodities and commodity linked currencies. Treasurer Scott Morrison says the weaker Australian dollar is a positive for the national economy. "It's obviously very good for our tourism industries ... but equally with our export industries, feeding into these new trade agreements that we have, it also makes us far more competitive," Mr Morrison told Bloomberg TV.
In the US session
Unemployment Claims and Philly Fed Manufacturing Index figures were published. In the week ending January 16, the advance figure for seasonally adjusted
initial claims was 293,000, an increase of 10,000 from the previous week's revised level. Analysts were anticipating decrease to 279,000. The previous week's level was revised down by 1,000 from 284,000 to 283,000. The 4-week moving average was 285,000, an increase of 6,500 from the previous week's revised average. The previous week's average was revised down by 250 from 278,750 to 278,500.
Philly Fed diffusion index for current activity increased from a revised reading of -10.2 in December to -3.5 and has now been negative for five consecutive months. Smaller increase to -5.8 was anticipated. The index for current new orders remained negative but increased 10 points, to -1.4.Firms reported an increase in shipments to begin the new year: The shipments index increased 12 points, its first positive reading in four months. Firms reported continued declines in inventories.
With no data releases from Australia tomorrow, focus will remain on developments in China. In the US session Existing Home Sales figures will be published. Incline to 5.21 million is anticipated.
Figures to watch:
Existing Home Sales (Friday 16:00)
