UK Second Estimate GDP | Current Market Sentiment

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
There is no trade call for the session. Ahead we have two important releases - UK Second Estimate GDP at 9:30am GMT and Eurozone Final CPI at 10:00am GMT. Both of which have the capacity to provide direction in sterling and euro.

Current Market Sentiment

The key economic release for the Asia-Pacific session was Q4 Private Capital Expenditure from Australia which beat estimates at 0.8% on the headline, above -3.0% expected. Building Capex and Plant and Machinery Capex also beat estimates. However the estimates for 2016 and 2017 Capex were disappointing with 2015/16 down 0.6% since prior estimate and 2016/17 was down 19.5% from first estimate. 2016/17 Capex showed estimates of $82b, below the expected smaller decline to $93b. These details of the release outweighed any positive sentiment from the headline beat and Aussie fell 45 pips from post-announcement highs.

The Nikkei initially moved up during the session, following on from the positive Wall Street close. This helped USDJPY rally over 150 pips from yesterday's lows, however Asian equities began to decline in the latter stage of the session with the Shanghai Composite down over 6%. Accordingly, some yen strength has re-emerged in markets.

These releases were also covered in the weekly risk events video. You can watch it here.

P.S. - If you want to learn more about how I trade, check out the link below

Jarratt Davis - Free Forex Course
 

IrwanI

Sergeant Major
Messages
516
Thanks Jarrat,Aud Capital Expenditure data is better than expected but it doesn't move the Aud and that is not a good sign for Aud.Your opinion please.
 

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Thanks Jarrat,Aud Capital Expenditure data is better than expected but it doesn't move the Aud and that is not a good sign for Aud.Your opinion please.
Irwanl, Estimates for 2016/17 forecast investment were much lower, hence the failure in AUD to rally.
 
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