Data:
Monday:
- No real impactful data
Tuesday:
- EUR ZEW Economic Sentiment: exp. 26.5
- EUR German ZEW Economic Sentiment: exp. 20.4
Wednesday:
- USD JOLTS Job Openings: exp. 10.95M
- USD FOMC Member Clarida & Bostic Speaks
- USD CPI m/m: exp. 0.3%
- USD Core CPI m/m: 0.2%
Thursday:
- USD FOMC Meeting Minutes
- AUD Employment Change: exp. -135.0K
- AUD Unemployment Rate: exp. 4.8%
- USD PPI /m/: exp. 0.4%
- USD Core PPI m/m: exp. 0.6%
- USD Unemployment Claims: exp. 328K
Friday:
- USD FOMC Member Barkin Speaks
- USD Core Retail Sales m/m: exp. 0.5%
- USD Retail sales m/m: exp. -0.3%
Saturday:
- Prelim UoM Consumer Sentiment: exp. 73.5
Sunday:
- FOMC Member Williams Speaks
AUDUSD Day’s Range: 0.72883 – 0.73384
We got some Tier 1 US data coming up this week, with CPI on Wednesday, PPI and FOMC meeting minutes on Thursday. The U.S. employment report last Friday was unexpectedly weak, with 194,000 jobs added in September, well below the monthly average of 561,000. The unemployment rate declined for the third straight month dropping from 5.2% to 4.8%. The report also showed a persistent increase in wage growth. U.S. Treasury bond rallied to 1.61% today, highlighting the inflationary pressure. Investors expect the Federal Reserve to tighten its policy as early as November.
The USD dropped marginally due to the extended debt ceiling, crisis averted. U.S. equity dropped after the release of the weaker-than-expected U.S. labour reports. The commodity market rebounded sharply following the recent selloff as sully chain shortage and rising price are causing concern among investors.
The resurgence of COVID-19 hit Singapore and new daily cases raised to a record of 2809. Singapore tightened its restrictions and it is not opening up even its vaccination level exceeds the opening condition – 80%. Singapore may keep its limited travel and social distancing until 2024.
If you want to discuss how a how we can help your business protect itself from further declines in the AUD/USD, please get in contact your account manager or email us on sales@cafx.com
AUDUSD Daily Chart:
Major moves in the market:
Stocks
- The S&P 500 fell 0.19%, closed at 4391.34
- The Nasdaq 100 dropped 0.31%, closed at 14762.00
- S&P/ASX 200 rose 0.87%, closed at 7320.10
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1572
- The British pound rose 0.4% to $1.3619
- The Japanese yen was at ￥112.2400
Bonds
- The yield on 10-year Treasuries advanced four basis points to 1.61%
Commodities
- Brent crude oil was at USD/Bbl 80.07
- Gold was at USD/OZ 1752.30
- Iron ore was at USD/T 122.86