Analysis and Recommendation: The AUD/USD gave up 16 points to trade at 0.8767 after home loans came in well under expectations. The Reserve Bank of
The AUD/USD gave up 16 points to trade at 0.8767 after home loans came in well under expectations. The Reserve Bank of Australia (RBA) has weighed in yet again on the introduction of macro prudential policies to slow down lending activity. In a speech yesterday, the RBA’s Head of Financial Stability Luci Ellis — who has been critical of such intervention in the past — noted that “risks had been building” and that the RBA and the Australian Prudential Regulation Authority (APRA) are discussing “steps that could be taken to reinforce sound lending practices”.
Only a couple of months ago the RBA derided macro prudential policies as the “latest fad”. Now they seem completely on board, with RBA assistant governor Malcolm Edey last week noting that he expected “an announcement before the end of year”. What prompted the change in direction is unclear but it’s a welcome development.
The Australian Dollar underperformed in overnight trade, sliding as much as 0.4 percent on average against its leading counterparts. The move tracked a selloff across Asian stock exchanges, pointing to risk aversion as the catalyst behind the decline.
The details of the Federal Reserve’s September meeting, released Wednesday, gave investors further reason to hesitate from re-establishing bullish dollar bets.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Today’s economic releases actual vs. forecast:
Cur. |
Event |
Actual |
Forecast |
Previous |
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JPY |
Monetary Meeting |
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JPY |
Tertiary Industry |
-0.1% |
0.2% |
-0.3% |
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AUD |
Home Loans |
-0.9% |
0.1% |
0.3% |
Upcoming Economic Events that you should be monitoring:
Cur. |
Imp. |
Event |
Actual |
Forecast |
Previous |
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Holiday |
Japan – Health-Sports Day |
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Holiday |
Canada – Thanksgiving Day |
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NZD |
FPI (MoM) (Sep) |
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0.3% |
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CNY |
Exports (YoY) (Sep) |
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9.4% |
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CNY |
Imports (YoY) (Sep) |
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-2.4% |
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CNY |
Trade Balance (Sep) |
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49.83B |
Government Bond Auction
Date Time Country Auction
Oct 13 09:00 Norway T-bill auction
Oct 13 09:10 Italy BTP/CCTeu auctions
Oct 13 09:30 Germany Eur 2.0bn new 6M Bubill (Apr 2015) auction
Oct 14 08:30 Spain 6 & 12M T-bill auction
Oct 14 09:30 Belgium 3 & 12M T-bill auction (Jan & Oct 2015)
Oct 15 09:03 Sweden Bond auction
Oct 15 09:30 Germany Eur 4.0bn Sep 2016 Schatz auction
Oct 16 08:30 Spain Bono/Obligacion auction
Oct 16 09:30 UK Auctions 0.125% 2024 I/L Gilt
Oct 16 15:00 US Announces details of 30Y TIPS auction on Oct 23