No shocks but still very early and thin
Welcome to a new exciting week. GBP opens a bit lower after the negative weekend press. For the rest we’re very close to Friday’s closes. Risk has not been hit on the ME situation and oil currencies open equally quiet… for now.
–RBA Assistant Governor Debelle spoke at 22:00 gmt at the Business Investment in Australia conference:
-It appears that there has been a solid upward trajectory in non-mining business investment over the past couple of years
– Australian non-mining investment in real terms is currently around 17% higher than it was at Q1 2008; that compares with spending in the US up by about the same amount, while in the U.K. it has risen by 13%, and by 3% in Japan;
-Euro area is still 4% lower than 2008
– Investment Concentrated In Health, Information, Media And Telecommunications
– Pick Up In Infrastructure Spending Has Spilled Over Into Other Investment
– Expectations of weak future conditions have been restraining business investment even more.
-Some Pockets In Economy Showing Signs Of Wage Pressure
-Rate Hike Likely To Come From Good Economy, Not Shock
– We Are Well Aware Of That, Doesn’t See A Shock That Would Force Rate Rises
-If Interest Rates Were Materially Higher Households Would Have Trouble Servicing Their Debt
– Still A Risk That Wages Growth Stays Low For Longer
Audusd a tad lower on the back of this.
It’s still very early doors and delayed reactions are still very possible.