Critical data await the Asian Pacific this week
Sun, Aug 15 2010, 12:22 GMT
Last week witnessed a decline in both major currencies and stocks after fears increased that the global economic recovery is losing steam, along with the critical date released from various economies, which failed to calm investors. Yet critical data await the pacific this week which might help alter conditions or intensify the jitters .
The Japanese economy will release the preliminary GDP reading for the second quarter, and expectations are for the economy to have expanded by 0.6%, compared with the previous 1.2%. The economy may expand an annual 2.3% as expected from 1.3%.
Japanese companies may hold off spending as the economy faces the Yen’s rapid appreciation where it edged towards a 15-year high versus the dollar, which will impede the Japanese economic recovery and derail the nation's export.
Moreover, the BOJ decided last week, to keep interest rates near zero at 0.10% during the month of August as the bank gauges the risk of the Yen's advance.
The world's largest second economy is losing the recovery’s momentum, especially as Chinese demand declines. Monetary policy makers repeated that the economy is picking up due to stimulus measures taken globally.
On the other hand, the RBA will release its minutes after monetary policy makers kept the interest rate unchanged at 4.50%. Mr. Stevens returned borrowing cost to their average levels after the past series of hikes when the rate was raised six times during seven meetings since early October.
Furthermore, the RBA indicated that the expansion is expected to increase inflationary risks as the weakness of both government spending and households spending, which helping central bank to keep the benchmark interest rate unchanged in coming period.
Published on Sun, Aug 15 2010, 12:24 GMT
Sun, Aug 15 2010, 12:22 GMT
Last week witnessed a decline in both major currencies and stocks after fears increased that the global economic recovery is losing steam, along with the critical date released from various economies, which failed to calm investors. Yet critical data await the pacific this week which might help alter conditions or intensify the jitters .
The Japanese economy will release the preliminary GDP reading for the second quarter, and expectations are for the economy to have expanded by 0.6%, compared with the previous 1.2%. The economy may expand an annual 2.3% as expected from 1.3%.
Japanese companies may hold off spending as the economy faces the Yen’s rapid appreciation where it edged towards a 15-year high versus the dollar, which will impede the Japanese economic recovery and derail the nation's export.
Moreover, the BOJ decided last week, to keep interest rates near zero at 0.10% during the month of August as the bank gauges the risk of the Yen's advance.
The world's largest second economy is losing the recovery’s momentum, especially as Chinese demand declines. Monetary policy makers repeated that the economy is picking up due to stimulus measures taken globally.
On the other hand, the RBA will release its minutes after monetary policy makers kept the interest rate unchanged at 4.50%. Mr. Stevens returned borrowing cost to their average levels after the past series of hikes when the rate was raised six times during seven meetings since early October.
Furthermore, the RBA indicated that the expansion is expected to increase inflationary risks as the weakness of both government spending and households spending, which helping central bank to keep the benchmark interest rate unchanged in coming period.
Published on Sun, Aug 15 2010, 12:24 GMT