1/10/2021 Friday

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% vs.0.2%
• USD Durable Goods Orders m/m: Exp.0.7% vs. 1.8%
• 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% vs. -1.7%

 

Wednesday:

• USD CB Consumer Confidence: Exp. 115.2 vs. 109.30
• FOMC Member Bostic Speaks (Federal Reserve Bank of Atlanta President Raphael Bostic)

 

Thursday

• USD Pending Home Sales m/m: Exp. 1.1% vs. 8.1%
• USD Crude Oil Inventories: Prev. -3.5M vs. 4.6M
• BOE Gov Bailey Speaks
• USD Fed Chair Powell Speaks
• CNY Manufacturing PMI: Exp.50.3 vs. 49.6
• CNY Non-Manufacturing PMI: Exp.50.0 vs. 53.2
• USD Final GDP q/q: Exp. 6.1% vs.6.1%
• USD unemployment claims: Exp. 333K vs. 362L
• USD Chicago PMI: Exp.64.9 vs. 64.7

 

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: 0.71771 – 0.72572

 

The US dollar index dropped from its new fresh high posted yesterday the commodity-backed pairs including AUDUSD recovered. Chin begins its Golden week holiday today and Hong Kong’s market is closed today as well.

 

Fed Chairman Powell admitted on Wednesday’s FOMC meeting that inflation is more structural, and more concerning than earlier this year. Investors weigh the likelihood of Fed reducing asses purchase and increasing rate. U.S. Congress passed a nine-week spending bill to avert a government shutdown. The legislation passed Senate yesterday and now waiting for Joe Biden’s approval. China non-manufacturing PMI figures were better than expected, however, the manufacturing PMI showed a contraction for the first time since the initial outbreak of COVID-19, causing some concerns to investors.

 

The number of new claims for unemployment benefit rose further last week as California announced on 17^th Sep that around 340,000 people on the government fund-aid program, which expired on 4^th Sep, will move to another program to maximize their access to assistance. The Labour Department said the initial claims for state unemployment benefit rose 11,000 for the week ended 25^th Sep. The Commerce Department, on the other hand, showed a slightly faster economic growth annualized rate at 6.7% compared to previously reported 6.6% in August.

 

 

AUDUSD Daily Chart:

 

Major moves in the market:

Stocks

• The S&P 500 fell 1.19%, closed at 4307.54
• The NASDAQ Composite fell 0.44%, closed at 14448.57
• S&P/ASX 200 again 1.88%, closed at 7332.20

Currencies

• The Bloomberg Dollar Spot Index fell 0.2% Thursday
• The euro was little changed at $1.1581
• The British pound was steady at $1.3480 after rising 0.4%
• The Japanese yen was little changed at 111.32 per dollar after it rose 0.6% Thursday

Bonds

• The yield on 10-year Treasuries fell three basis points to 1.49% Thursday

Commodities

• Brent crude oil was at USD/Bbl 75.42
• Gold was at USD/OZ 1754.92
• Iron ore was at USD/T 119.65