Global macro overview for 31/07/2015:
The PPI data published yesterday was better than expected with the main index at the level of 0.3% q/q (1.1%y/y) in the second quarter against 0.2% q/q in the previous one. Nevertheless, the other data were not so good as anticipated with bushiness confidence falling to -15.3 from -2.6 a month before and declining private sector credit reading (0.4% m/m vs. 0.5% m/m). This new set of data might be important for RBA to consider another rate cut at the nearest meeting.
Despite yesterday's higher-than-expected data from the Australian economy, the AUD/USD pair is likely to close the month at its lows. A new, six-year low, monthly close below the 0.7300 is expected after a brakeout below the important support at the level of 0.7371.
