Back
21 May 2015
China PMI, NZ budget eyed - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, breaks down the key events for the day, with China manufacturing from Markit/HSBC and NZ budget release to make the headlines in Asia.
Key Quotes
"At 11:45am Syd/9:45am local we see the ‘flash’ May survey of China manufacturing from Markit/HSBC. April was a disappointing 48.9, with consensus for a modest rise to a still soft 49.3. New Zealand releases its 2015/16 budget at 12pm Syd/10am Sing/HK. There should be no significant NZD response to the statement. As the first budget since the election, this should be a prudent document, with a small deficit likely in the current year, improving to a projected small surplus in 2015/16, NZD0.3bn."
"The advance May Markit PMIs for Europe are due from 5pm Syd/3pm Sing/HK. France continues to lag Germany though it has been roughly stable so far this year. The ECB releases its account of the 15 April policy meeting. Release of these minutes is a fairly new procedure, with little inspiration for markets in what we have seen so far. ECB president Draghi and Fed vice chair Fischer speak at an ECB conference in Portugal."
"UK Apr retail sales are expected to remain encouraging, seen up 0.2% m/m, 3.7% y/y ex-autos and fuel (volume, not value). This report often impacts GBP and Westpac sees upside risks on the data."
"In the US we will see weekly initial jobless claims for the week including the May payrolls survey. Consensus is 270k after the very low 264k the week prior. The May Philly Fed manufacturing index is seen roughly steady at +8 while existing home sales are expected to have risen 0.8% m/m in Apr after the 6.1% jump in March."
Key Quotes
"At 11:45am Syd/9:45am local we see the ‘flash’ May survey of China manufacturing from Markit/HSBC. April was a disappointing 48.9, with consensus for a modest rise to a still soft 49.3. New Zealand releases its 2015/16 budget at 12pm Syd/10am Sing/HK. There should be no significant NZD response to the statement. As the first budget since the election, this should be a prudent document, with a small deficit likely in the current year, improving to a projected small surplus in 2015/16, NZD0.3bn."
"The advance May Markit PMIs for Europe are due from 5pm Syd/3pm Sing/HK. France continues to lag Germany though it has been roughly stable so far this year. The ECB releases its account of the 15 April policy meeting. Release of these minutes is a fairly new procedure, with little inspiration for markets in what we have seen so far. ECB president Draghi and Fed vice chair Fischer speak at an ECB conference in Portugal."
"UK Apr retail sales are expected to remain encouraging, seen up 0.2% m/m, 3.7% y/y ex-autos and fuel (volume, not value). This report often impacts GBP and Westpac sees upside risks on the data."
"In the US we will see weekly initial jobless claims for the week including the May payrolls survey. Consensus is 270k after the very low 264k the week prior. The May Philly Fed manufacturing index is seen roughly steady at +8 while existing home sales are expected to have risen 0.8% m/m in Apr after the 6.1% jump in March."