Uncertainty over how the U.S will respond to the attacks on Saudi oil feeds could leave the markets tentative ahead of tomorrow's FOMC decision.
The economic calendar was on the heavier side through the Asian session this morning.
Economic data included 3rd quarter consumer sentiment figures out of New Zealand and 2nd quarter house price figures out of Australia.
On the monetary policy front, the RBA also released its minutes from the 3rd September policy meeting.
Outside of the stats, geopolitical risk continued to influence ahead of tomorrow’s FOMC decision. For the global financial markets, the risk of U.S retaliation to Iran’s alleged involvement in the Saudi strikes will continue to test risk appetite.
The Westpac McDermott Miller Consumer Confidence Index fell from 103.5 to 103.1 in the 3rd quarter. According to the 3rd quarter survey,
The Kiwi Dollar moved from $0.63435 to $0.63411 upon release of the figures. At the time of writing, the Kiwi Dollar down by 0.08% to $0.6339.
Quarter-on-quarter, house prices fell by 0.7% in the 2nd quarter, following on from a 3% fall in the 1st quarter. Economists had forecast a fall of 1%.
According to the ABS,
The RBA Meeting Minutes delivered few surprises. Salient points from the minutes included:
Looking ahead,
On the policy front,
The Aussie Dollar moved from $0.68561 to $0.68533 upon release of the figures and minutes. At the time of writing, the Aussie Dollar was down by 0.20% to $0.6851.
The Japanese Yen was down by 0.08% to ¥108.21 against the U.S Dollar.
It’s a busier day ahead on the economic calendar. Key stats include September ZEW economic sentiment figures for Germany and the Eurozone.
While Germany’s economic sentiment figure is the key driver, we can expect the Eurozone number to influence.
Outside of the numbers, updates from Brexit talks will also provide direction on the day.
At the time of writing, the EUR was up by 0.07% to $1.1009.
It’s a quiet day ahead on the data front. There are no material stats to provide the Pound with direction through the day.
Today’s Supreme Court ruling on the lawfulness of suspending Parliament will impact later in the day. Any updates from Johnson’s meetings in Europe and political chatter will also influence.
At the time of writing, the Pound was down by 0.10% to $1.2418.
It’s a relatively quiet day ahead on the economic calendar. August industrial production figures are due out this afternoon.
The markets will be looking for an uptick in production to further ease any near-term concerns over the U.S economy.
Outside of the stats, chatter from the Oval Office will need monitoring throughout the day
The Dollar Spot Index was up by 0.03% to 98.643 at the time of writing.
It’s also a relatively quiet day on the economic calendar. July manufacturing sales figures are due out later today.
The stats are unlikely to have a material influence on the Loonie.
The Loonie was down by 0.07% at C$1.3249, against the U.S Dollar, at the time of writing. A pullback in crude oil prices weighed early on in the day.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.