Analysis and Recommendation: The AUD/USD tumbled 30 points to trade at 0.8800 as the drop in global commodities, including metals is weighing heavily on
The AUD/USD tumbled 30 points to trade at 0.8800 as the drop in global commodities, including metals is weighing heavily on the Aussie dollar. The dollar jumped as much as 1.7 per cent to an overnight high of US88.59c, before losing some of its gains to fetch around US88c in local morning trade on Thursday. The poor U.S. data led “to the idea that the U.S. economy is importing global economic weakness,” Chris Weston, chief markets strategist in Melbourne at IG Ltd., wrote in an e-mail to clients. “Sentiment is still deteriorating and there are still many questions that need answers. There have been concerns around Chinese growth and yesterday’s inflation numbers are clearly a concern.”
Speculation the Fed will raise rates next year as the economy improves had led to a record rally in the U.S. currency. The advance started to reverse last week after minutes of the Sept. 16-17 Federal Open Market Committee meeting showed participants said growth “might be slower than they expected if foreign economic growth came in weaker than anticipated.” Officials also expressed concern about “further appreciation of the dollar.”
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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NZD |
Business NZ PMI (Sep) |
58.1 |
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56.5 |
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CNY |
New Loans |
|
750B |
703B |
Upcoming Economic Events that you should be monitoring:
Cur. |
Imp. |
Event |
Actual |
Forecast |
Previous |
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USD |
Building Permits (Sep) |
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1.029M |
1.003M |
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USD |
Building Permits (MoM) |
|
2.8% |
-5.6% |
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USD |
Fed Chair Yellen Speaks |
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USD |
Housing Starts (MoM) |
|
4.8% |
-14.4% |
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USD |
Housing Starts (Sep) |
|
1.004M |
0.956M |
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CAD |
Core CPI (MoM) (Sep) |
|
0.1% |
0.5% |
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CAD |
Core CPI (YoY) (Sep) |
|
2.0% |
2.1% |
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CAD |
CPI (MoM) (Sep) |
|
0.0% |
0.0% |
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USD |
Michigan Consumer |
|
74.4 |
75.4 |
|
|
|
USD |
Michigan Consumer |
|
84.1 |
84.6 |
Government Bond Auction
Date Time Country Auction
Oct 20 12:00 Belgium OLO Auction
Oct 20 12:00 Slovakia Bond auction (for decision)
Oct 21 10:30 Spain 3 & 9M T-bill auction
Oct 21 11:00 Norway Bond auction
Oct 21 11:00 UK Auctions 2.75% 2024 Gilt
Oct 22 11:30 Germany Eur 2.0bn Aug 2046 Bund auction
Oct 23 11:03 Sweden I/L bond auction
Oct 23 17:00 US Announces 2/5/7Y Note & 2Y FRN auctions on Oct 28/29/30 & 29
Oct 23 17:30 Italy Announces details of BTPei/CTZ auctions on Oct 28
Oct 23 19:00 US 30Y TIPS auction
Oct 24 17:30 Italy Announces details of BOT auction on Oct 29