Aussie Weakens on Soft GDP, Markets Steady Despite South Korean Political Turmoil
| Action Insight Daily Report 12-4-24 |
Aussie Weakens on Soft GDP, Markets Steady Despite South Korean Political Turmoil |
Australian Dollar faced broad declines in Asian trading following Q3 GDP data that fell short of expectations, marking a continued slowdown in the economy. Despite the weakness, the data isn’t severe enough to prompt an immediate policy response from RBA, either this month or in February. The central bank’s decision-making remains anchored on progress in services disinflation, easing labor market pressures, and broader signs of domestic economic adjustment. Nonetheless, this GDP reading is still a step forward, albeit tiny. . Asian markets, meanwhile, remained largely steady despite political chaos in South Korea. President Yoon Suk Yeol’s surprise declaration of martial law to counter alleged “anti-state forces” among his political opponents was met with unanimous rejection by lawmakers, forcing him to rescind the order swiftly. The political backlash now leaves Yoon facing the possibility of impeachment. Despite the drama, KOSPI fell only -1.3%, and market reactions elsewhere, such as an initial spike in Yen and a drop in US Treasury yields, quickly reversed. So far this week, Aussie and Kiwi have taken over from European majors as the weakest performers, followed by Swiss Franc. Dollar and Yen remain in a tight race for the strongest currency, with Sterling trailing as a distant third. Euro and Canadian Dollar occupy middle positions in the currency rankings.... |
EUR/AUD Daily Outlook Daily Pivots: (S1) 1.6164; (P) 1.6208; (R1) 1.6247; More... Immediate focus is now on 1.6359 resistance in EUR/AUD as rebound from 1.5963 resumes today. Firm break there will be the first sign of bullish trend reversal, after successfully defending 1.5996 key support level. Further rally should then be seen to 1.6598 resistance for confirmation. Nevertheless, break of 1.6156 support will turn bias back to the downside for 1.5996 again. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:30 | JPY | Services PMI Nov F | 50.5 | 50.2 | 50.2 | | 00:30 | AUD | GDP Q/Q Q3 | 0.30% | 0.50% | 0.20% | | 01:45 | CNY | Caixin Services PMI Nov | 51.5 | 52.5 | 52 | | 08:50 | EUR | France Services PMI Nov F | 45.7 | 45.7 | | 08:55 | EUR | Germany Services PMI Nov F | 49.4 | 49.4 | | 09:00 | EUR | Eurozone Services PMI Nov F | 49.2 | 49.2 | | 09:30 | GBP | Services PMI Nov F | 50 | 50 | | 10:00 | EUR | EurozonePPI M/M Oct | 0.40% | -0.60% | | 10:00 | EUR | Eurozone PPI Y/Y Oct | -3.30% | -3.40% | | 13:15 | USD | ADP Employment Change Nov | 165K | 233K | | 13:30 | CAD | Labor Productivity Q/Q Q3 | 0.20% | -0.20% | | 14:45 | USD | Services PMI Nov F | 57 | 57 | | 15:00 | USD | ISM Services PMI Nov | 55.5 | 56 | | 15:00 | USD | Factory Orders M/M Oct | 0.40% | -0.50% | | 15:30 | USD | Crude Oil Inventories | -1.6M | -1.8M | | 19:00 | USD | Fed's Beige Book |
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