Market Update - 3 December 2012

• This week will be another week in which political decisions will be at the top of the eurozone agenda. Yet another Eurogroup meeting kicks off today, followed by an EU finance ministers meeting tomorrow.
  
  Following the announcement of a deal on Greece last week, the eurozone finance ministers will continue to work towards putting the final shape on the agreement. The primary hurdle to their formal signoff is Greece conducting a successful debt buyback operation by 13 December, when the Troika will decide on the disbursement of the next tranches of its loan to the country.

• China’s official PMI rose to a 7 month high of 50.6 in November following prelim private sector survey that showed factory activity reviving to a 13 month high curbing worries of the world’s growth engine and also helping the AUDUSD perk up to 1.0400.

• USDMYR opened where it closed Friday at 3.0400 the support handle. There is this sense of General Election around the corner as there have been some selling in the equities market and uncertainty on the currency seems to be creeping up. I don’t know if it means anything but today, the police have been situated around Dataran Merdeka and there are mobile police horses deployed…..

• RBA rate decision is tomorrow and it’s the final one for 2012, I reckon there should be a 25bps cut to bring the rate down to 3.00% flat, but market might not have a huge reaction to the rates decision but the post meeting statement will be keenly anticipated.