Australia: Construction work declined by a relatively modest 0.7% in Q1 - Westpac

Sandeep Kanihama FXStreet Contributor

Andrew Hanlan, Research Analyst at Westpac, notes that the Australian construction work fell by a relatively modest 0.7% in the opening quarter of 2017, broadly meeting expectations (mkt median -0.5% and Westpac -0.2%).

Key Quotes

“Construction work is beginning to stabilise, after trending lower over recent years, weighed down by the mining investment downturn.”

“At the turn of the year, the mining investment downturn is waning and public works is providing a boost to activity.”

“Private infrastructure work actual rose 1.8% in the quarter, which is a surprise – with further falls still likely. We note that total construction work in Q1 fell in the mining states of WA and Qld.”

“Public works rose 3.0% in the quarter, with gains in both infrastructure and building.”

“Another factor at play in the March quarter 2017 was wet weather. A weather disruption is arguably apparent in home building, with activity weaker than suggested by approvals and the sizeable work pipeline.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.