Today’s economic news looks quite interesting.
The dollar fell to its lowest level at 101.36, since January as investors awaited a change in U.S. interest rate data on Wednesday and Federal Reserve Chairman Jerome Powell’s Federal Reserve address. Economic Jackson Hole in Wyoming later this week.
China PBOC Monthly Loan Prime Rate (LPR) Setting left 1-year and 5-year rates unchanged at 3.35% and 3.85% respectively (as expected).
RBA Aug Minutes noted that Members agreed unlikely rates that would be cut in the short term. Stressed that a longer rate pause than market implies might achieve CPI goal. Immediate hike in rates could be justified if risks to inflation had increased ‘materially’.
New Zealand July Trade Balance (NZD): -1.0B v +0.6B prior; Exports: 6.2B v 6.0B prior; Imports: 7.1 v 5.5B prior.
– China govt said to have unleashed rare financing tool to support start-ups; during the first 6 months of 2024 total new intellectual property-pledged financial loans rose by 57% y/y to CNY420B.
Crude Oil prices dropped after falling for two straight sessions as Israel accepting a proposal to tackle disagreements blocking a ceasefire deal in Gaza eased supply concerns, while China’s economic weakness continued to weigh on demand outlook.
U.S. Secretary of State Antony Blinken said on Monday that Israeli Prime Minister Benjamin Netanyahu had accepted a “bridging proposal” presented by Washington to tackle disagreements blocking a ceasefire deal in Gaza, and urged Hamas to do the same.
Gold prices traded near to a new all-time high in the on Tuesday on the back of news of solid demand from China, a weakening US Dollar (in which the precious metal is mostly priced), and continued geopolitical risks stemming from the Middle East, where peace talks are at risk of running aground.
Aluminium prices hit their five-week high on increased fund buying and a shortage of raw material in top producer China. Three-month aluminium on the London Metal Exchange CMAL3 earlier touched $2,482 per metric ton, the highest since July 15.
At this time, the price of aluminum material will be higher. China’s alumina output hit a three-month high after rising consumption. Cuts at Alcoa’s and Riotinto’s alumina plants in Australia will also affect supply.
Commodity Closing on MCX
MCX gold futures settled +0.27% to 71,777. Silver settled +0.46% to 84,730. Copper settled -0.81% to 799.45. Crude oil -1.58% at 6,154 Natural gas -1.29%. to 184.10.
Major Economic Data and Event scheduled today. What economic news will affect the market today?
Japan
At 5.20am
Trade Balance. Data is foreseen at -0.72T from previous -0.82T.
Above data could have a mixed impact on the Yen.
UK
At 11.30am- – Public Sector Net Borrowing. Data is foreseen at 0.5B from the previous 13.6B.
Above mentioned economic news and data could have a volatile impact on the Pound.
Canada
At 6.00pm-
IPPI m/m. Data is foreseen at -0.3% from previous 0.0%.
RMPI m/m. Data is foreseen at -0.7% from previous -1.4%.
Above mentioned economic news and data could have a mixed impact on the dollar.
US
At 8.00pm- Crude Oil Inventories.
At 11.30PM- FOMC Meeting Minutes.
Above minutes will have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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