Focus of Wednesday's morning part of the session was on Australian CPI data. Australian CPI rose 0.2% in the December quarter 2014, compared with a rise of 0.5% in the September quarter 2014. This was below market expectations on 0.3% rise. CPI rose 1.7% through the year to the December quarter 2014, compared with a rise of 2.3% through the year to the September quarter 2014. However, Trimmed Means CPI data beat market forecast on 0.5% increase and rose by 0.7%.
Thursday's session brought Import Prices data from Australia. The Import Price Index rose 0.9% in the December quarter 2014. Analysts were anticipating bigger increase by 1.5%. Over the quarter, depreciation in the value of the Australian dollar had a considerable upward impact on the prices paid for all of Australia’s major imported products.
Friday's session was marked by PPI figures. Australian PPI rose 0.1% in the December quarter 2014. Analysts were forecasting 0.3% increase. This followed 0.2% increase in the third quarter. It rose 1.1% through the year to the December quarter 2014.The increase was mainly due to rises in the prices received for building construction (+0.6%), other transport equipment manufacturing (+5.8%) and computer and electronic equipment manufacturing (+5.5%). This was partly offset by falls in the prices received for petroleum refining and petroleum fuel manufacturing (-11.7%).
This week markets will be looking at:
HSBC Final Manufacturing PMI (Monday 2:45)
Building Approvals (Tuesday 1:30)
Trade Balance (Tuesday 1:30)
Cash Rate/RBA Rate Statement (Tuesday 4:30)
Retail Sales (Thursday 1:30)
RBA Monetary Policy Statement (Friday 1:30)
