We will start our news from Japan, as the Japanese economy released its All Industry Activity index reading for the month of June, where the reading came at -0.6%, compared with a previous reading of 1.1% a month earlier which was revised to 1.2%, while expectations were of 0.7. In India, Moody`s Investors Service decided on Monday to reiterate its stable outlook on India`s Baa3 sovereign- credit rating, the lowest investment grade. Moody`s officials said India has adequate currency reserves for the balance of payments needs in the short term, but the fiscal policy is the weakest aspect of the Indian economic profile. In New Zealand, the 2-year inflation expectations came in at 2.36% in the third quarter of this year compared with 2.06 in the quarter ended June. In Australia, The Reserve Bank of Australia released its August meeting minutes on Tuesday, signaling possibility for more interest rate cut further down the road. The central bank added it doesn’t expect the Chinese economy to recover in the near future. Australian monetary policymakers expect mining exports to increase, while they still see employment conditions deteriorating at the current stage. German Producer Price Index (PPI), fell to -0.1% in July from 0.0 percent in June, missing expectations of 0.2 percent gain. PPI growth eased unexpectedly to 0.5 percent year-on-year, slightly down from 0.6 percent. Analysts called for an average forecast of 0.7 percent. In the currencies market, we notice that the dollar declined generally against major currencies amid the recent unclear expectations about the Fed’s new policies, which curbed demand for the dollar, leaving profits to the union currency.
Posted on: Tue, 20 Aug 2013 07:20:51 +0000