• Greek and German finance ministers “didn’t
even agree to disagree”
• The long-awaited meeting turned out more or less as expected. German finance minster reiterated
Germany’s “tough love” position that Greece needs to continue its reforms and
work with troika as per prior agreements.
• RBA released its quarterly statement of
monetary policy, which includes updated economic growth and inflation
forecasts.
• The statement was less dovish than
expected and showed that the Bank revised down its outlook for inflation and
growth rate for the first half of 2015.
• AUD gained however, as they kept the annual
outlook for inflation within the Bank’s target range of 2%-3% and they expect
the annual growth rate to pick up later this year.
• AUD/USD has recovered all of its losses following Tuesday’s rate
cut, and given the optimistic statement it could extend its gains towards the
key psychological level of 0.8000.
• The highlight of the day will be the US
non-farm payrolls for January:
• The market consensus is for an increase in
payrolls of 230k, down from 252k in December. If the actual figure miss
expectations this could weaken USD across the board.
• Unless it is accompanied by a solid wage
growth, the decline in the unemployment rate and a figure above 200k are
unlikely to convince the market for an early rate hike.
• Today:
• Germany, Norway: industrial production for December
• Canada: Unemployment rate for January
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