Archived IMT (2011.02.01)

AUSSIE FIRES AHEAD after the RBA said it would look beyond the floods, whose damage it deemed was temporary, and issuing an upbeat assessment on domestic demand dynamics. The central bank also focused on the inflationary impact of the floods. Private economists expect the RBA hikes to start again in Nov. AUDUSD gains +140 pips for the second straight day to hit a fresh 4-week high at 1.0084. All eyes on whether a close above the Jan 19 high of 1.0070 will materialize. A clear break above it could extend towards 1.0130. Chinas Jan PMI slipped to 52.9 from 53.9 but the PMI issued by HSBC rose edged up to 54.5 from 54.4%. GBPUSD continued its bullishness after the NIESR thinktank announced its prediction of THREE interest rates hikes by the BoE this year, reaching 1.25%. Also boosting GBP is the UK Jan manuf PMI hitting an all time high of 62 (vs. exp 57.9). GBPUSD broke through the $1.6030 resistance, setting its sight towards the Aug 2009 trendline resistance at 1.6150. WATCHOUT for US JAN manuf ISM exp at 58.0 from 58.5, but could easily surpass expectaions after yesterday's release of the Chcagp PMi soared to 68.8 from 66.8 , EURUSD still trying to close above the $1.3755-60 resistance.