Data:
Monday
- No real impactful data
Tuesday
- USD Fed Chair Powell Speaks
- GBP BOE Gov Bailey Speaks
- FOMC Member Bowman & Evans Speaks
- AUD NAB Business Confidence: prev. 13
- EUR ZEW Economic Sentiment: exp. 20.6
- EUR German ZEW Economic Sentiment: exp. 20.3
Wednesday
- EUR ECB President Lagarde Speaks
- USD PPI Oct: exp. 0.6%
- USD Core PPI Oct: exp. 0.5%
- GBP BOE Gov Bailey Speaks
- CAD BOC Gov Macklem Speaks
- CNY CPI y/y: exp. 1.4%
- CNY PPI y/y; exp. 12.6%
Thursday
- USD CPI Oct: exp. 0.5%
- USD Core CPI Oct: exp. 1.4%
- USD Unemployment Claims: exp. 266K
- AUD Employment Change: exp. 50.0K
- AUD Unemployment Rate: exp. 4.8%
- GBP Prelim GDP Q3: exp. 1.5%
Friday:
- US and CA Bank Holiday
Saturday:
- USD JOLTS Job Openings: exp. 10.55M
- USD Prelim UoM Consumer Sentiment; exp. 72.5
- USD FOMC Member Williams Speaks
Sunday:
- No real impactful data
AUDUSD Day’s Range: 0.73601 – 0.74179
We have the data from the labor market released this week, with the focus on U.S. and Australian employment change and unemployment rates. The RBA is likely to keep its loose policy and is unlikely to have an early rate hike before 2024, with the wage increase remaining a big issue. AUDUSD depreciated throughout the session. Investors have been buoyed by the strong earnings despite the rising inflation and supply chain shortages. Market sentiment is also supported by the announcement of Pfizer’s pills, which can cut the risk of severe Covid-19 by 89%, and investors’ concerns about how quickly the central banks will reduce their stimulus eases. Economists suggest that the vaccines contribute to a more substantial reopening and growth while the low-interest rate provides supports for the shares market over the next 12 months.
China posted a record monthly trade surplus in October as exports increased despite global supply-chain shortages. Export rose 27.1% last month from a year earlier to $300.20 billion, which is the 13th straight month of growth, exceeding the expectation of 22.8% gain. Imports rose 20.6% and the trade surplus was $84.54 billion. The strong trade performance is providing support for the weak Chinese economy, which was caused by the real estate downturn, electricity shortage, and slowed industry output.
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AUDUSD Daily Chart:
Major moves in the market:
Stocks
- The S&P 500 rose 0.37% , closed at 4697.53
- The Nasdaq 100 dropped 0.04%, closed at 16344.75
- The Dow Jones Industrial Average rose 0.56%, closed at 36327.95
- S&P/ASX 200 gained 0.39%, closed at 7456.90
Currencies
- The Japanese yen traded at 113.42 per dollar
- The offshore yuan was at 6.3972 per dollar
- The Bloomberg Dollar Spot Index fell 0.2% Friday
- The euro was at $1.1564
Bonds
- The yield on 10-year Treasuries declined eight basis points to 1.45%
- Australia’s 10-year bond yield dropped eight basis points to 1.74%
Commodities
- Brent crude oil was at USD/Bbl 82.88
- Gold was at USD/OZ 1816.84
- Iron ore was at USD/T 94.43