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Australia's central bank would consider cutting interest rates in May

Tuesday, April 17, 2012 3:52 AM GMT

Good Morning,

- EURUSD is off the Asian highs around 1.3145. Aussie sits on the lows of the days after the RBA minutes today. Important numbers to day include UK inflation data, ZEW in Germany/Eurozone, Bill auctions in Spain, Rate Decision in Canada and Housing Data in the United States.

- Stocks: Nikkei -0.11 %, Hang Seng -0.77 %, Shanghai Composite -0.40 %, Dow Jones +0.56 %, S+P500 -0.05 %

- ECB Nowotny said he doesn't see an "immediate need" for a third three-year tender.

- Federal Reserve Bank of Cleveland President Sandra Pianalto said a government report showing employers added 120,000 workers in March, the fewest in five months, underscores the choppy nature of the U.S. expansion.

- Federal Reserve Bank of St. Louis President James Bullard estimated U.S. economic growth will quicken from a range of 2.5 percent to 2.7 percent during the first quarter to 3 percent for the entire year.

- Japan said it will provide $60 billion to the International Monetary Fund's effort to expand its resources and shield the global economy against any deepening of Europe's debt crisis.

- Foreign direct investment (FDI) in China fell in March for the fifth consecutive month, official figures showed Tuesday.

- China's Ministry of Commerce said on Tuesday it was confident of achieving its targeted rate of growth in international trade in 2012 and that the second quarter would prove stronger than the first quarter.

- The London Metal Exchange is asking its members whether they would like to use China's yuan currency in settling and clearing contracts and drop the British pound in the roster of currencies available to them, the Financial Times reported on Tuesday. Offering traders the option to trade in yuan is part of a survey being conducted by the LME to help it design its planned new clearing house, the newspaper said.

- Australia's central bank would consider cutting interest rates in May if data due next week confirmed a benign inflation outlook, minutes of its April 3 policy meeting showed. "If slower growth in demand could be expected to result in a more moderate inflation outcome, then a case could be made for a further easing of monetary policy," the Reserve Bank of Australia minutes revealed. "The Board would have the opportunity at its next meeting to review the inflation outlook based on comprehensive new data on prices...members judged it prudent to evaluate those data before considering a further policy adjustment." Government figures on inflation for the first quarter are due on April 24 and are expected to show annual underlying inflation remained in the middle of the RBA's 2 to 3 percent target band.

- India reduced interest rates for the first time since 2009 by a larger than expected amount, seeking to bolster growth while flagging inflation risks that curb space for further reductions. Governor Duvvuri Subbarao lowered the repurchase rate to 8 percent from 8.5 percent (expected 8.25 percent), the Reserve Bank of India said.

- Argentine President Cristina Fernandez de Kirchner seized control of YPF SA, the nation's largest crude producer, ousting Spanish owner Repsol YPF SA after a dispute over slumping oil output and investments. Argentina took over management of YPF with immediate effect, replacing Chief Executive Officer Sebastian Eskenazi with Planning Minister Julio De Vido, Fernandez said yesterday in a speech in Buenos Aires. The government will also send a bill to Congress to take a 51 percent stake in YPF, she said.

- The World Bank on Monday chose Korean-born American health expert Jim Yong Kim as its new president.

- 14.30 US Housing Stars Mar
- 14.30 US Building Permits Mar
- 15.15 US Industrial Production Mar
- 15.15 US Capacity Utilization Mar
- 11.00 Eurozone CPI Mar
- 11.00 Eurozone ZEW Apr
- 11.00 Germany ZEW Apr
- 10.30 Spain to sell 364/546 Day Bills
- 14.30 ECB Draghi
- 15.00 Bank of Italy Quarterly Economic Bulletin
- 19.00 Bundesbank Dombret
- 20.00 ECB Gonzalez-Paramo
- 10.30 UK DCLG House Prices Feb
- 10.30 UK CPI Mar
- 10.30 UK RPI-X Mar
- 14.30 Canada Manufacturing Sales Feb
- 15.00 Bank of Canada Rate Decision - no change expected
(CET)

Have a nice day !

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