Reuters Insider - Inside the News: Australia Floods Take Heavier Economic Toll

CPI SA

13/06/2016 11:08

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        The Australian flooding toll mounts, with the     
                     central bank warning the damage may trim a full   
                     percentage point from GDP.                        
 
 
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Transcript (May be auto-generated)

                 Inside the News at 8AM in Hong Kong this Wednesday, January 12. Australian 
flooding continuing to take its toll on the country with a Central Bank board 
member warning that the damage may trim up to 1% of GDP growth, and most Aussie 
banks had expected an impact of 0.5% or less. Evacuations are now underway for 
some residents of Brisbane, the country's third largest city. Fourteen people 
are confirmed dead with at least 90 more missing. That's put the Aussie-Dollar 
under pressure today, dropping towards the 0.9800 mark in the Asian session. 
IFR's Head of Asia FX John Noonan is standing by in Sydney with the latest. 
John, what can you tell us? 

Well the escalation of the flood crisis in Queensland has led investors to sell 
out of the Australian Dollar and now they're moving into the Canadian Dollar as 
the commodity currency of choice. The Australian Dollar has now fallen 5% 
against the Canadian Dollar since the start of 2011. The Aussie-US fell to 
0.9803 today to break below the 0.9811 support level which is the 61.8% 
Fibonacci of the 0.9536, 1.0257 move. And the next level of support isn't found 
until the 100-day moving average at 0.9745. Some analysts are looking for a move
all the way to a full retracement of the December 1 low at 0.9536. Jonathan. 

IFR's John Noonan there in Sydney. Now, Euro-Dollar also regaining ground 
overnight as speculation rises EU officials could raise the lending capacity of 
the bloc's rescue fund. 1.3055 looming now as the next point of major 
resistance. Euro traders will track the Portugal debt auction today as it goes 
to market with EUR1.25 billion of notes in a key test of investor appetite for 
EU peripheral debt. Energy shares helped the Dow and the S&P 500 end a three-day
losing streak on Tuesday. But Reuters Quantitative Analyst Mike Tarsala says the
market is sending out mixed signals ahead of Intel earnings on Thursday. Yes, 
the S&P was up. Yes, we saw a bullish engulfing pattern which is positive, but 
the volume was light for a second session in a row. And the NASDAQ 100 have what
we call a hanging man pattern, that's a potential near-term reversal signal. Now
we need to see the confluence of signals before we're gonna call a reversal on 
the market, but this is anything but after the races. China's rising CPI remains
a major concern for markets, but Beijing has the ability to manage inflation 
expectations. 

That's the message from Vice Premier Li Keqiang who is speaking at a 
China-Britain business council dinner in London. Li is widely tipped to become 
the country's next Premier. The country is also on track with its push to 
internationalize the Yuan. Bank of China's New York and LA offices have begun 
offering RMB deposits and exchange services to its clients. The move follows 
similar offerings from the likes of HSBC. The BOC is the first major state-owned
firm to offer such services in the US. Well Bank of Montreal has bought Hong 
Kong-based wealth management firm Lloyd George as the Canadian bank looks to 
expand its Asia footprint. Lloyd George has about $6 billion of assets under 
management. With rising global food prices, we'll explore the issues and risks 
of food inflation with the Asian Development Bank, Rabobank and Control Risks. 
That's right here on Insider at 0930 GMT. I'm Jon Gordon, this is Reuters