Asia Focus: China Q1 GDP to confirm slowing; Aussie jobs astound
In this Asia Focus Video, Yvette Roper, Editor of TradingFloor.com talks with Andrew Robinson, Correspondent for Saxo Capital Markets in Singapore about the latest jobs report from Australia and previews some upcoming data in China and Singapore, giving his take on the health of these key economies in the region.
Australia added some 44,000 jobs in March with a good mix of part-time and full-time employees seen. The report beat even the most optimistic expectations and indicated there is a positive broad-based development in the Australian jobs market and not just a rebound from the decline in February, says Andrew.
The astounding report immediately benefited the AUDUSD which closed near nine-day highs. It also reduced the probability of a rate cut at the Reserve Bank of Australia’s next meeting on May 1 to 75 percent from 90 percent.
Amid increased focus on the slowdown in Chinese economic growth first quarter GDP data on Friday is seen continuing this trend. The Chinese dragon however is not expected to rear its ugly head. The data is seen reflecting a natural reaction to a slowing global trend, says Andrew.
Focus early next week will be on Singapore’s GDP data which is more erratic than that from China. A small rebound close to 1 percent year-on-year is expected. Relative to China this looks quite dismal but compared to the rest of the world it is quite an okay performance, says Andrew.
Trade data in Singapore will also be interesting to watch. Considering China posted strong trade data for March it is highly likely that we will see another strong number from Singapore as well, says Andrew. However it is not expected to have any implications on monetary policy in Singapore or its exchange rate.