Being end of month, I suspect some bigger funds will want to finish on a high, though not as significant as end of quarter.
Released data has been good for us too, so may see a small afternoon rally imo....don't know about a green finish, but even flatish would be good!
Here's some of the data released:
(IGM) Today's batch of headline [AUSSIE DATA] comes in generally better than expected with retail sales rising by a more robust 0.7% m/m pace over July (mkt f/c 0.4%), building approvals unexpectedly posting a 2.3% m/m rebound (f/c -0.7%) but credit growth slowing to a mere 0.1% m/m pace (mkt f/c 0.3%). Over Q2, the current a/c gap also narrowed in sharply to -A$5.64bln (mkt f/c -A$6.5bln) and set to add a firmer 0.4ppts to Wed's GDP release (mkt f/c +0.3ppts). Although highly unlikely to spur a rate hike at next week's meeting given the increasingly uncertain global backdrop, the data run underscores the resilience of the domestic economy, reducing the need for a near priced in rate cut at this stage.
(IGM) [AUST DATA REVIEW] Q2's current a/c deficit narrowed in sharply by $10.80bln to A$5.64bn, more than forecasts on a A$6.5bn gap and after a slightly lower revision was made to Q1's prelim deficit of A$16.551bn to A$16.457bn. Bolstered by an improvement in terms of trade on the back of higher contract commodity prices, the balance of goods & services improved sharply to post a surplus for the 1st time since Q1 2009 of $6.497blnversus a deficit of $3.21bln in Q1. Otherwise on the NID side; the income deficit slipped to a less hefty $11.909bn on lower net debt outflows from lower US s/t ylds and higher Aud. In chain volume terms, net exports were expected to add a firmer 0.4ppts to growth (f.c 0.3ppts) vs a detraction of 0.5ppts prior; posing some upside risks to current forecasts for Weds Q2 GDP read of ard 1% q/q growth, 2.9% per annum.
(IGM) [AUST DATA REVIEW] Retail sales came in firmer than expectations over July, rising by a more robust 0.7% over the mth; stronger than forecasts on a 0.4% gain and after June's initial 0.2% rise was revised up to a larger 0.4% gain. Spending managed to pick up some pace in July in line with a surge in consumer sentiment over the mth, stemming from ongoing robust employment growth, RBA's ongoing pause on rates, resolution of the proposed mining tax and a recovery in stocks. Whilst the numbers are not spectacular, the ongoing strength is a sign of consumers resilience; and suggests rate cuts are still not needed at this stage.
For some different reading, have a look at "Bernanke's speech translated" (Much more concerning long term!)
(20min delay)