News & Research

Australian GDP data: Wednesday, 0:30. The Australian economy contracted 0.5% in the third quarter contrary to estimates for a 0.2% growth. This was the first negative reading in more than five years, following a 0.5% gain in the previous quarter. However, analysts expect the economy will rebound in the coming months due to the recent rally in commodity prices. Building activity contracted 3.6% for the quarter and was the largest contributor to the decline in GDP growth. Financial and insurance services, professional scientific and technical services, rental hiring and real estate services and administrative support services also registered lower than expected growth. However agriculture showed a 7.5% gain offsetting the overall growth slump. Economists expect the Australian economy will grow by 0.7% in the fourth quarter.

Canadian rate decision: Wednesday, 15:00. The Bank of Canada kept its overnight rate target at 0.5%, due to global uncertainty, particularly in the United States. Governor Stephen Poloz said the Central Bank was concerned about the U.S. trade policy and its effects on the Canadian economy. Uncertainty remains high making it difficult for the BoC to provide economic projections. The BoC upwardly revised its 2017 GDP outlook to 2.1%, despite the strong Canadian dollar weighing on exporters as well as concerns over US trading policy.

US ISM Manufacturing PMI: Wednesday, 15:00. Economic activity in the manufacturing sector accelerated in January, rising for the 92nd consecutive month to 56 points from 54.7 in the previous month. Analysts expected a reading of 55 points. The new orders index increased by 0.1% percentage points to 60.4, while the employment Index reached 56.1, an after climbing 3.3 percentage points from December. Manufacturing PMI is expected to rise to 56.1 this time.

US Crude Oil Inventories: Wednesday, 15:30. U.S. crude stocks increased 564,000 barrels in the week to Feb. 17 missing predictions for a 3.5 million barrel rise. Crude imports, however, declined 1.4 million barrels per day, while exports increased 185,000 bpd to a record high of 1.2 million bpd. Crude oil and gasoline inventories soared to record highs in the previous week as refineries cut output amid maintenance and gasoline demand softened. Gasoline demand weakened due to the weather conditions in the West Coast.