The Australian economy has been on a steady recovery path, and now we have a very symbolic confirmation that S&P ASX 200 is about to cross 7000!
The important release for China may shake the markets
China will release the level of its manufacturing PMI on May 31, at 4:00 MT time. This is a leading indicator of economic health. As China is one of the biggest economies in the world, its data tends to affect the global markets. As a result, higher figures of the indicator affect positively not only the Chinese yuan but also the risk sentiment in the market. Riskier environment increases the demand on the risk-weighted currencies, such as the AUD, the NZD, and the emerging market currencies. On the flipside, the lower actual level of manufacturing PMI for China pulls the Chinese currency down and hurts the risk sentiment in the market. The risk-off sentiment makes the risky assets go down as well.
• If the actual level of manufacturing PMI is higher than the forecasts, the risk sentiment will be on;
• If the actual level of manufacturing PMI is lower than the forecasts, the risk sentiment will be off.
US retail sales will be out on Thursday, April 15, at 15:30 MT. It is a significant release for traders as it will impact the US dollar.
As the earnings season kicks in, JPMorgan is the first to impress us with the better-than-expected data!
The Reserve Bank of New Zealand will hold a meeting on Wednesday, April 14, at 05:00 MT.