Data:
Monday:
- ECB President Lagarde Speaks
- FOMC Member Evans Speaks (Federal Reserve Bank of Chicago President Charles Evans)
- USD Core Durable Goods Orders m/m: Exp.0.5%
- USD Durable Goods Orders m/m: Exp.0.7%
- FOMC Member Williams Speaks (Federal Reserve Bank of New York President John Williams)
Tuesday:
- FOMC Member Brainard Speaks (Federal Reserve Governor Lael Brainard)
- BOE Gov Bailey Speaks
- AUD Retail Sales m/m: Exp. -2.5%
Wednesday:
- USD CB Consumer Confidence: Exp. 115.2
- FOMC Member Bostic Speaks (Federal Reserve Bank of Atlanta President Raphael Bostic)
Thursday
- USD Pending Home Sales m/m
- USD Crude Oil Inventories: Prev. -3.5M
- BOE Gov Bailey Speaks
- USD Fed Chair Powell Speaks
- CNY Manufacturing PMI: Exp.50.3
- USD Final GDP q/q: Exp. 6.7%
- USD unemployment claims: Exp. 328K
- USD Chicago PMI: Exp.64.9
Friday
- FOMC Member Williams Speaks
- FOMC Member Bostic Speaks
- FOMC Member Evans Speaks
- CAD GDP m/m: Prev. 0.7%
- USD Core PCE Price Index m/m: Exp. 0.2%
Saturday:
- USD ISM Manufacturing PMI: Exp. 59.6
AUDUSD Day’s Range: 0.72360 – 0.72693
We have quite a few speeches from FOMC members this week, with Fed Chair Powell speak on Thursday. There are also some data coming up this week, including the U.S. GDP, U.S. unemployment claims, and the China Manufacturing PMI on Thursday, U.S. Core PCE price index and ISM Manufacturing PMI will be released on Friday and Saturday respectively.
US Dollar Basket DXY advanced as investors prepare for the Federal Reserves’ eventual stimulus tapering. Loretta Mester, Fed Bank of Cleveland President said she supported starting to reduce bond purchases in November. Fed Reserve Bank of Kansas City President Esther George said the criteria for substantial further progress – a condition for Fed’s tapering condition – have been met.
The debt crisis faced by Evergrande Group still remains as a headline, Asia stocks are set to start the week under pressure with traders focuses on the impact of Evergrande on the Asia market. China’s housing regulator has stepped up oversight of Evergrande’s bank account to ensure the funds are used to complete housing projects and not used to pay their debts.
10-year treasury yields broke through a rand that was held since mid-July after the hawkish message last week from the Federal Reserve and the Bank of England. 10-year yield railed to 1.45 at the end of last week.
AUDUSD Daily Chart:
Major moves in the market:
Stocks
- S&P 500 rose 0.15%, closed at 4455.48
- Nasdaq Composite dropped 0.03%, closed at 15047.70
- Australia’s S&P/ASX 200 Index dropped 0.37%, closed at 7342.60
Currencies
- The Japanese yen was at 110.78 per dollar
- The offshore yuan was at 6.4623 per dollar
- The Bloomberg Dollar Spot Index rose 0.3% Friday
- The euro traded at $1.1720
Bonds
- The yield on 10-year Treasuries advanced two basis points to 1.45%
Commodities
- Brent crude oil was at USD/Bbl 74.62
- Gold was at USD/OZ 1748.95
- Iron ore was at USD/T 120.10