Data:
Wednesday
- USD CB Consumer Confidence: exp. 108.4 vs. 113.8
- USD Richmond Manufacturing Index: exp. 4 vs. 12
- AUD CPI q/q: exp. 0.8%
- AUD Trimmed Mean CPI q/q: exp. 0.5%
AUDUSD Day’s Range: 0.74918 – 0.75255
We have the AUD Q3 CPI data coming up today, and investors are suspecting the impact of strict restrictions in the past three months on Australia’s economic growth. The risk-on sentiment returned as U.S. stocks rose to an all-time high as solid corporate earnings helped to ease the concerns that rising inflation and tightening monetary policy will slow the recovery from the pandemic. The S&P 500 and Dow Jones Industrial Averaged reached record high’s due to the release of strong earnings on Tuesday. However, Investors are concerned with the zero-COVID strategy in China but the impact is not yet reflected in the market sentiment. AUDUSD touched a high of 0.75255.
U.S. consumer confidence rebounded and come higher than the market forecast with an actual figure of 113.8 vs. an expectation of 108.4. the unexpectedly rose is due to concerns about inflation were offset by improving labour market prospects, suggesting the economic growth for the third quarter is getting better.
British retail sales increased in October after a September slowdown(CBI Realised Sales: 30 vs. exp. 14) but global supply chain shortage reduced their stocks to the lowest level since 1985. Meanwhile, the British public’s inflation expectation over the next 12 months rose to the highest since 2008 level in October to 4.4%.
AUDUSD Daily Chart:
Major moves in the market:
Stocks
- The S&P 500 rose 0.18% , closed at 4574.79
- The Nasdaq 100 rose 0.10%, closed at 15560.75
- The Dow Jones Industrial Average rose 0.04%, closed at 35756.88
- S&P/ASX 200 rose 0.03%, closed at 7443.40
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1599
- The British pound was little changed at $1.3763
- The Japanese yen fell 0.4% to 114.13 per dollar
Bonds
- The yield on 10-year Treasuries declined two basis points to 1.61%
- Germany’s 10-year yield was little changed at -0.12%
- Britain’s 10-year yield declined three basis points to 1.11%
Commodities
- Brent crude oil was at USD/Bbl 84.24
- Gold was at USD/OZ 1792.62
- Iron ore was at USD/T 122.47