Data:
Monday
- No Real Impactful event
Tuesday
- USD ISM Manufacturing PMI: exp. 60.4
- AUD Cash Rate: exp. 0.1%
- AUD RBA Rate Statement
Wednesday
- NZD Employment Change Q3: exp. 0.4%
- NZD Unemployment rate: exp. 3.9%
- CNY Caixin Service PMI: exp. 53.6
- USD ADP Non-Farm Employment Change
Thursday
- USD ISM Service PMI: exp. 61.9
- USD FOMC Statement
- USD Federal Fund Rate: exp. 0.25%
- USD FOMC Press Conference
- All OPEC-JMMC Meetings
- GBP Asset Purchase Facility: exp. 875B
- GBP BOE Monetary Policy & Summary
- GBP Official Bank Rate: exp. 0.1%
Friday
- CAD Employment Change: prev. 157.1K
- CAD Unemployment Rate: prev. 6.9%
- USD Non-Farm Employment Change: exp. 397K
- USD Unemployment Rate: exp. 4.7%
Saturday:
- USD Treasury Currency Report
AUDUSD Day’s Range: 0.75004 – 0.75280
AUD well performed in October, trading above the 0.7500 handles although there was an appreciation in the USD at the end of the week. Federal Reserve, Bank of England, and Reserve Bank of Australia meetings are the highlights of this week. RBA’s last meeting confirmed a reduction in bond purchases but extended them until mid-February 2022 and pushed against the market expectation of a rate hike next year. Furthermore, RBAA seems to abandon its position after making a bid to defend the April 2024 yield target on October 22. Investors expect a change from the RBA in their monetary decision tomorrow. Fed’s meeting on Thursday is likely to start tapering its asset purchase, market participants will keep an eye on the amount and time of the reduction. Recent remarks from the BOE officials suggested concern about price pressure, investors are betting on rate hikes while economists predict no change for the BOE meeting on Thursday.
U.S. equity rallied to a record high on Friday despite the disappointing results from some large tech companies. Traders bet central banks around the world that they will not able to maintain the loose policy amid surging inflation. Chinese Manufacturing and Non- Manufacturing PMIs both miss the market expectation (49.2 vs. exp. 49.7 & 52.4 vs. exp 53.0 respectively), indicating further economic weakness due to power shortage, surging commodity prices, and strict COVID controls. The property sector in China still remains a focus and at least four developers defaulted on bonds last month.
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AUDUSD Daily Chart:
Major moves in the market:
Stocks
- The S&P 500 rose 0.19% , closed at 4605.38
- The Nasdaq 100 rose 0.27%, closed at 15880.75
- The Dow Jones Industrial Average rose 0.25%, closed at 35819.56
- S&P/ASX 200 dropped 1.44%, closed at 7323.70
Currencies
- The Bloomberg Dollar Spot Index rose 0.7% Friday
- The euro was at $1.1563
- The Japanese yen was at 114.08 per dollar, down 0.1%
- The offshore yuan was at 6.4075 per dollar
Bonds
- The yield on 10-year Treasuries declined three basis points to 1.55% Friday
Commodities
- Brent crude oil was at USD/Bbl 83.16
- Gold was at USD/OZ 1781.34
- Iron ore was at USD/T 121.23