FY2016 for India has had a soft start according to data received which covered both the manufacturing and services sector. On the other hand the state election results released on 19 May gave a small boost to the government.
The Bharatiya Janata Party alliance showed their popularity and majority in states like Assam and West Bengal. In the Upper House however, as BJP does not hold majority, it would surely require some support from other parties in order to get the critical reforms in regards to the goods and services tax.
For India, the GDP is expected to increase 7.5% in FY 2016 and economists predict a similar figure and growth for FY 2017. The downside to this forecast would still be a weak monsoon and slow reform implementations.
Looking at the US markets the GDP increased at an annual rate of 0.8 percent in the first quarter of 2016, according to the “second” estimate released by the Bureau of Economic Analysis.
US Equities also saw some gains and their are expectations of a further rate rise from the U.S Federal Reserve in June or at the latest July.
As on 30 May, AUD/USD is moving around .7186 and AUD/INR is sitting around 48.38.
Priyanka Mehta is a Senior Foreign Exchange Dealer with Compass Global Markets which is one of the leading FX solutions provider to Individuals, Businesses, Importers, and Exporters in Australia.
For a professional and personalised service, please call Priyanka on 0421 699 620 or email at priyanka@compassmarkets.com
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