ASX is set for positive start on Monday with SPI up 34 points to 6029. This is on the back of a strong trading session in US with Dow Jones up 0.9%, S & P up 1.1% and Nasdaq up 1.5%. Europe also had a positive close with FTSE up 0.3%, CAC up 1.2% and DAX up 1%. Global markets has been boosted by a strong US employment numbers on Friday with 223,000 jobs added and unemployment rate dropped to 3.8%, the results surpassed the market expectations.
Australia’s largest lender Commonwealth Bank has settled AUSTRAC case for $700m almost doubling the bank’s earlier estimates of $300m. In a statement released to the ASX this morning CBA said it would pay $702.5 million to settle the matter and agreed to new breaches of the Anti-Money Laundering and Counter-Terrorism Act relating to the bank’s risk’s procedures, monitoring and customer due to diligence.
AUDUSD was down trading below US $0.7522 before its rebound to US $0.7567 on the back of non-farm payroll numbers being released on Friday and a stronger Iron Ore price jumping 1.3% to US 66.16 per tonne. Gold is down 0.4% trading around US 1,293.73 per ounce.
Local investors will be watching our GDP numbers due our on Wednesday with the market expecting an increase of 0.8% from previously quarter of 0.4%. RBA is also due to meet on Tuesday but no one is expecting the cash rate to be changed at 1.5%.
DATA RELEASES THIS WEEK:
AUD – Retail Sales m/m
GBP – Construction PMI
AUD – RBA Rate Statement
GBP – Service PMI
EUR – ECB President Draghi Speaks
USD – ISM Non-Manufacturing PMI
AUD – GDP q/q
CAD – Trade Balance
USD – Crude Oil Inventories
AUD – Trade Balance
CAD – Employment Change & Unemployment Rate
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