AUDUSD Day’s range: 0.73134 – 0.73693
Investors expect the speech from RBA Gov Lowes today will give further clarification on the RBA’s monetary policy decision last week. However, it is unlikely that Lowes will give any hints for the future path of monetary policy. Asian stocks dropped after Wall street stocks fall on growth concerns, Treasuries yields advanced as the inflation report indicates that the Federal Reserve will not rush to taper the stimulus plan.
U.S. consumer prices increased at their slowest pace in six months in August as motor vehicle prices falls, indicating that inflation has peaked. The consumer price index increased 0.1% last month, the smallest gain since February. The overall CPI rose 0.3% in August, the smallest increase since January. The used motor vehicle price decreased 1.5% and the food index gained 0.4%, slowing down after two month’s gains as the cost of daily products dropped.
The Bank of America’s (BofA’s) September fund manager survey showed that only a tenth of respondents expects a stronger global economy in the coming months. Economic growth expectation is currently at 13% the lowest since April 2020. 84% of investors expect the Federal Reserve to reduce their stimulus plan by the end of this year but the expectation for a rate hike was a delay from November 2022 to February 2023.
Data:
- USD CPI m/m :Exp 0.4% vs. 0.3%
- USD Core CPI m/m: Exp 0.3% vs. 0.1%
- CNY Retail Sales y/y: Exp 6.9%
- CNY industrial production y/y: Exp 5.8%
- CNY Unemployment Rate: Exp 5.1%
- GBP CPI y/y: Exp 2.9%
- CAD CPI August m/m: prev 0.6%
- USD Empire State Manufacturing Index: Exp 17.1
- USD August Industrial Production m/m: Exp 0.4%
AUDUSD Daily Chart:
Major moves in the market:
Stocks
- The S&P 500 fell 0.57%, closed at 4443.05
- The Nasdaq Composite fell 0.45%, closed at 15037.76
- Australia’s S&P/ASX 200 Index gained 0.16%, closed at 7437.30
Currencies
- The Japanese yen traded at 109.71 per dollar
- The offshore yuan was at 6.4373 per dollar
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1807
Bonds
- The yield on 10-year Treasuries declined four basis points to 1.28%
Commodities
- Brent crude oil was at USD/Bbl 70.75
- Gold was at USD/OZ 1803.89
- Iron ore was at USD/T 128.11