May 20, 2019
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United States (US): No Economic Data Today
This week data includes existing home sales, FOMC minutes, jobless claims and PMI.
Australia: Shock Election Victory
Australian dollar traded at 71.57 U.S. cents at 9:00 am PST
AUD rose over 0.6% following the shock election victory of the ruling Liberal-National Coalition. Despite trailing in most opinion polls, PM Morrison waged a relentless attack on the Labor Party’s progressive agenda to take action on climate change and strip tax perks from wealthy Australians. At the same time, the government ran on its record of economic management, across-the-board tax cuts and a return to a budget surplus. Besides global trade concerns, the speculation that RBA Governor Lowe may signal to markets that the RBA is prepared to cut Australia’s cash rate, potentially as soon as early June also put downward pressure on AUD.
European Union (EU): Germany’s PPI Rises Slightly
Euro traded at 1.1163 against USD at 9:00 am PST.
Germany’s PPI rose 2.5% YoY in April, faster than 2.4% increase in March. Excluding energy, producer prices rose only 1.3%.
Japan: GDP Surprise, Industrial Production
Japanese Yen traded at 109.91 per USD at 9:00 am PST.
Japan's GDP unexpectedly climbed 0.5% QoQ in Q1 from 0.2% fall in Q4, beating estimate of 0.1% fall. On an annualized yearly basis, GDP was up 2.1%, again exceeding expectations for a fall of 0.2% following the 1.6% gain in Q4.
Industrial production declined 0.6% MoM in March, less-than-estimated of 0.9% decrease. On a year-on-year basis, industrial production declined 4.3% in March.
This market update is prepared by Cathay Bank for informational purposes only and does not constitute any form of legal, tax or investment advice, nor should it be considered an assurance or guarantee of future exchange rate movements or trends. This information is provided without regard to the specific objectives, financial situations or needs of any recipient. Cathay Bank does not make any representations or warranties about the accuracy, completeness or adequacy of this market update.