Focus Today: RBNZ Rate Decision, US GDP, and PCE Data
Key market drivers today include the RBNZ’s interest rate decision and critical US data releases—GDP growth and PCE inflation figures—set to shape market sentiment
FX Update
The dollar strengthened broadly on Tuesday amid firmer Treasury yields, ongoing geopolitical risks and concerns that President-elect Donald Trump’s proposed tariffs will lead to trade wars. Officials from Mexico, Canada and China warned that imposing hefty tariffs on goods would harm the economies of all involved and would risk aggravating inflation and damaging job markets.
Crude Oil:
Oil prices settled lower, extending the previous day’s losses in choppy trade after Israel agreed to a ceasefire deal with Hezbollah, reducing oil’s risk premium. The accord between Israel and armed group Hezbollah was expected to take effect on Wednesday, U.S. President Joe Biden said..
Gold:
Gold prices steadied, having touched their lowest in over a week earlier in the session as safe-haven demand for the metal eased on optimism about a potential ceasefire between Israel and Hezbollah militants in Lebanon. Further, investors awaited U.S. inflation data for clues on the scale of a possible Federal Reserve rate cut next month.
Copper:
Copper prices dropped modestly after incoming U.S. President Donald Trump provided details of proposed tariffs on top metals consumer China, which were lower than expected.
MCX Closing Update
Gold 75211 (Down 0.13%), Silver 88250 (Up 0.63%%), Crude oil 5776 (Down 0.86%), Copper 803.90 (Down 0.42%), Natural Gas 291 (Up 2.43%)
Major Economic Data and Event Released Yesterday
Minutes of the Fed’s Nov. 6-7 meeting showed participants less worried about the downside risks to jobs market and economy, seeing it as appropriate to lower rates gradually.
US New Home Sales fell to 610K, which was set at 725K.
Australia CPI inflation grew 2.1% year-on-year in October, data from the Australian Bureau of Statistics showed on Wednesday. The reading was weaker than expectations of 2.5% and remained steady from the prior month. Underlying inflation, as represented by annual trimmed mean inflation, rose 3.5% in October from 3.2% in the prior month, remaining well above the RBA’s 2% to 3% annual target range.
US The Conference Board (CB) released its Consumer Confidence figures, a key indicator of the level of consumer confidence in economic activity. The actual reading came in at 111.7, just shy of the forecasted 111.8, marking a significant increase from the previous figure of 2.1.
Major Economic Data and Event scheduled today – RBNZ Rate Decision, US GDP, and PCE Data
Australia
At 6.00am-
CPI y/y. Data is foreseen at 2.5% from previous 2.1%.
Construction Work Done q/q. Data is foreseen at 0.4% from previous 0.1%.
Above data could have a volatile impact on the dollar.
NewZealand
At 6.30am-
Official Cash Rate. Forecast 4.25% from previous 4.75%.
RBNZ Monetary Policy Statement.
RBNZ Rate Statement.
At 7.30am- RBNZ Press Conference.
Above event could have an volatile impact on the dollar.
Eurozone
At 12.30pm- German GfK Consumer Climate. Data is foreseen at -18.8 from previous -18.3.
Above data could have a neutral impact on the Euro.
US
At 8.30pm-
Prelim GDP q/q. Data is foreseen at 2.8% from previous 2.8%
Unemployment Claims. Data is foreseen at 215k from previous 213k..
Core Durable Goods Orders m/m. Data is foreseen at 0.2% from previous 0.5%.
Durable Goods Orders m/m. Data is foreseen at 0.4% from previous -0.7%.
Prelim GDP Price Index q/q. Data is foreseen at 1.8% from previous 1.8%.
At 8.15pm-Prelim Wholesale Inventories m/m. Data is foreseen at 0.0% from previous -0.2%.
At 8.30pm-
Core PCE Price Index m/m. Data is foreseen at 0.3% from previous 0.3%
Pending Home Sales m/m. Data is foreseen at -2.1% from previous 7.4%.
Personal Income m/m. Data is foreseen at 0.3% from previous 0.3%.
Personal Spending m/m. Data is foreseen at 0.4% from previous 0.5%.
At 9.00pm- Crude Oil Inventories.
At 10.30pm- Natural Gas Storage
Above data could have a volatile impact on the dollar.
Until then, Happy Trading!
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