Economic News: Surprises in Australia’s Rates and German CPI


Economic News: Surprises in Australia’s Rates and German CPI

Economic News Highlights: Key Insights You Need to Know

FX Update

The dollar was up slightly in skittish trade on Monday as investor’s awaited U.S. inflation data later this week, while the Australian and New Zealand dollars rallied after China pledged an “appropriately loose” monetary policy next year. While markets have priced in a quarter-point rate cut by the Federal Reserve next week as a near certainty, investors are waiting for U.S. consumer price data on Wednesday..

Crude Oil:

Crude Oil prices climbed by more than 1.50% as top importer China flagged its first move toward a loosened monetary policy since 2010 aiming to bolster economic growth, state media reported citing a Politburo meeting.

Gold:

Gold prices climbed as China’s central bank resumed gold purchases after a six-month pause, while expectations for an interest rate cut at the Federal Reserve’s meeting next week strengthened.

Copper:                                                                                                                                  

Copper prices jumped on Monday to the highest in nearly a month after top metals consumer China said it would take more action to boost its lethargic economy. Prices had been slightly weaker ahead of the announcement by the Chinese Politburo that it had shifted its monetary policy stance to imply more easing is coming.

MCX Closing Update

Gold 77,486 (1.13%), Silver 95,197 (2.97%), Crude oil 5,825 (1.73%), Copper 831.05 (1.13%), Natural Gas 271.50(3.63%)

Major Economic Data and Event Update

·         Japan Gross domestic product (GDP) rose an annualized 1.2% in the three months to September, the Cabinet Office’s revised data showed on Monday, higher than economists’ median forecast and the initial estimate of 0.9% growth

·         China The consumer price index rose 0.2% last month year-on-year, data from the National Bureau of Statistics showed on Monday, below the 0.3% increase in October and a 0.5% rise forecast in a Reuters poll of economists. CPI fell 0.6% month-on-month, compared with a 0.3% fall in October and a forecast 0.4% decline.

·         US Stocks at wholesalers fell 0.2% in September. Economists polled by Reuters had expected that the gain in inventories, a key part of gross domestic product, would be unrevised at 0.2%.

Major Economic News, Data and Event scheduled today

China

Tentative –

Trade Balance. Data is foreseen at 682K from previous 679K.

USD-Denominated Trade Balance. Data is foreseen at 94.0B from previous 95.70B

Above data could have a volatile impact on the Yuan.

Austraila

At 9.00am-

Cash Rate. Expect 4.35% from previous 4.35%. RBA Rate Statement.

At 10.00am – RBA Press Conference.

Above data and event will have an volatile impact on the dollar.

JAPAN

At 11.30am – Prelim Machine Tool Orders y/y.  Previous was 9.3%.

Above data could have a mixed impact on the Yen.

Eurozone

At 12.30pm- German Final CPI m/m. Data is foreseen at -0.2% from previous -0.2%

At 2.30pm- Italian Industrial Production m/m. Data is foreseen at -0.1% from previous -0.4%.

All day- ECOFIN Meetings

Above mentioned economic news and data could have a mixed impact on the Euro.

US

At 4.30pm- NFIB Small Business Index. Data is foreseen at 94.6 from previous 93.70.

At 7.00pm

Revised Nonfarm Productivity q/q. Data is foreseen at 2.3% from previous 2.2%.

Revised Unit Labor Costs q/q. Data is foreseen at 1.3% from previous 1.9%.

Above mentioned economic news and data could have a volatile impact on the dollar.

Until then, Happy Trading!

Commodity Samachar Securities
We Decode the Language of the Markets

Also Read: Forex Newsletter: Gold, USD, Oil, and Major Indices Updates

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