GrowthAces

GrowthAces

The Australian economy unexpectedly shrank 0.5% in the third quarter of 2016, compared to an upwardly revised 0.6% growth in the June quarter. It was the first contraction since the March quarter 2011 and the fastest fall since the December quarter 2008, dragged down by investment and net trade. Through the year, the economy grew by 1.8%, slowing sharply from a...

GrowthAces

U.S. Commerce Department said on Tuesday new orders for manufactured goods rose 2.7% after an upwardly revised 0.6% gain in September. That was the largest increase since June 2015 and marked four straight months of gains. The Commerce Department also said orders for non-defense capital goods excluding aircraft, seen as a measure of business confidence and...

GrowthAces

The Reserve Bank of Australia ended Tuesday's meeting with rates at a record low of 1.5% following two easings this year, but conceded the annual pace of growth was set to slow. RBA Governor Philip Lowe said: “Some slowing in the year-ended growth rate is likely, before it picks up again. The outlook for business investment remains subdued, although measures of...

GrowthAces

U.S. ISM Non-Manufacturing for November rose 2.4 points to 57.2, beating the market consensus of 55.4 and achieving a 13-month high. While the survey likely benefited from the post-election relief that's showed up in just about every other survey of market conditions, the word "election" did not show up in the ISM's press release, with respondent comments instead...

GrowthAces

The Organization of the Petroleum Exporting Countries agreed on Wednesday its first oil output reduction since 2008 after de-facto leader Saudi Arabia accepted "a big hit" and dropped a demand that arch-rival Iran also slash output. The deal also included the group's first coordinated action with non-OPEC member Russia in 15 years. On Thursday Azerbaijan said it...

GrowthAces

The EUR/USD fell after strong ADP reading yesterday, but the reaction was short-lived and the rate is back above 1.0600 today. U.S. private employers added 216k jobs in November, well above market expectations for 165k gain. The ADP figures come ahead of the U.S. Labor Department's more comprehensive non-farm payrolls report on Friday, which includes both public...

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Sterling surged back to an 11-week high against the euro in late trade in London on Wednesday, racking up its best month since January 2009. But recent macroeconomic data from the UK were unexpectedly weak. A regular survey by market research firm GfK on Wednesday showed confidence among British consumers fell in November to its lowest level since just after the...

GrowthAces

The most important event for CAD investors is today’s OPEC meeting, at which its members discuss terms of a potential deal to cut production. Saudi Energy Minister Khalid al-Falih said on Wednesday OPEC was getting close to clinching a deal to limit oil output, adding it was fine for Iran to freeze production at pre-sanctions levels. The comments could be seen as...

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U.S. BEA revised real GDP growth in the third quarter higher to a gain of 3.2% qoq annualized, the best growth rate in eight quarters. The result compares to the Q3 advance estimate of 2.9% and the Q2 final reading of 1.4%. The stronger-than-expected results give the U.S. economy more momentum heading into the fourth quarter, where growth is likely to exceed 3.0%....

GrowthAces

Bank of Canada Governor Stephen Poloz said that the Canadian economy has some pockets of weakness but it would take a significant disruption to the Bank of Canada's outlook on inflation for the bank to consider more stimulus. He added that some of the weak data seen recently was part of the bank's expectation that fourth-quarter growth will slow after a strong...

GrowthAces

Japan's unemployment rate held steady in October as the availability of jobs improved and household spending fell at a slower pace, a tentative sign that a robust labour market is lending support to domestic demand. The seasonally adjusted unemployment rate in October was 3.0%, unchanged from the previous month and in line with market expectations. The...

GrowthAces

Japan’s nationwide core consumer price index, which includes oil products but excludes volatile fresh food costs, fell 0.4% in October from a year earlier after a 0.5% drop in September, matching a median market forecast. While falling gasoline and electricity prices continued to drag down inflation, nearly 60% of items making up the index saw prices rise, the...

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The Swiss National Bank's two top policymakers underscored on Wednesday their commitment to rein in a strong Swiss franc that has risen to levels against the euro last seen in June when Britain voted for Brexit. SNB Vice Chairman Fritz Zurbruegg said currency market interventions had become an increasingly important tool since the financial crisis and the euro...

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Britain's unemployment rate fell in the first three months after the Brexit vote to its lowest level in 11 years but there were some signs that a slowdown in the labour market could be coming. The unemployment rate edged down to 4.8% in the July-September period, compared with a median forecast of 4.9%. But the number of people in work rose by 49k, the slowest...

GrowthAces

Clinton victory means higher AUD/JPY and lower EUR/CAD The dollar inched lower ahead of voting in the U.S. presidential election on Tuesday, a sign of last-minute nerves over the chances of a victory for Donald Trump. Our baseline outlook, supported by the latest polls, is that the country is heading for four more years of gridlock with a Democratic President, a...

GrowthAces

U.S. non-farm payrolls report is scheduled for today. An upbeat jobs report is expected to increase hopes for a December U.S. interest rate hike, which usually pushes U.S. yields higher and supports the USD. But this time investors are focused mainly on the November 8 election and the reaction to U.S. jobs data may be limited. December Fed hike has been...

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Sterling surged to a four-week high on Thursday after England's High Court ruled that the government needed parliamentary approval to trigger Brexit and the Bank of England scrapped plans to cut interest rates. The government said it would appeal against the ruling by England's High Court, and Britain's Supreme Court is expected to consider the appeal...

GrowthAces

We expect British MPC to remain on hold today. Financial markets have now fully priced out the chances of a cut in the bank rate, which is one of the reasons for higher British yield curve. In the September MPC minutes, a majority of Committee members expected to support a further cut in the bank rate to its effective lower bound (of close to, but a little...