The US will release the CB Consumer Confidence, a survey of 5,000 households which asks respondents to rate the relative level of current and future economic conditions including labor availability, business conditions, and overall economic situation. After slipping in February, the index recovered in March to reach 52.5 points. It’s now expected to take one step higher and rise to 54.2 points.
Later today, Federal Chairman Ben S. Bernanke will testify before the National Commission on Fiscal Responsibility and Reform. His speech will be closely watched as it comes one day before the Fed’s rate decision announcement.
In Canada, Mark Carney, governor of the BOC, will testify to parliament this week in two sessions. The first of which is this afternoon (2030GMT). Over the course of the past week, the Canadian dollar has dipped several times below the parity line with its US counterpart, and speculations continue to increase that the BOC will opt for a rate hike as early as June 1st.
Carney will make an overview of the economic situation, and may give some more hints about the imminent rate decision. The big question is if it will come as soon as June 1st, or on the next meeting scheduled for July 20th.
The Canadian Dollar continues to flutter around the parity line with the US Dollar. The USD/CAD Forex pair hit 1.00215 during afternoon European trade, the daily high, but by then end of the day the Loonie managed to erase these losses and closed at 1.00033.
Down under in Australia, The Producer Price Index grew 1% on the first quarter 2010 compared to the Q4 2009 against forecast that expected an increase of 0.6. Australian business confidence and conditions weakened slightly in the first quarter of 2010 as stronger employment growth was more than offset by an easing in retail sales, according to the National Australia Bank's quarterly business survey issued early this morning.
Business confidence fell to an index reading of plus 17 points in the first quarter, down 1 point from the fourth quarter. Despite the small drop, confidence stayed positive among all sectors of the economy, with the mining sector the strongest of all, NAB said. Meanwhile, business conditions fell to an index reading of plus 8 points, down 1 point from the prior quarter. Despite the overall strength of activity across the economy, there is little evidence of an inflationary build-up, according to the survey.
After closing at 0.92771USD yesterday, the Aussie fell this morning, hitting a low of 0.92344USD. Analysts expect the Australian Dollar to reach parity with the U.S Dollar by mid 2010.
