The US$ was rather mixed on Monday despite some upbeat economic data and some hawkish Fed comments although it generally has a bid tone heading into the end of the session. The NY Empire State Manufacturing index jumped to 30.2 in October, up from 24.4, easily beating the expectation of 20.7, to make the highest reading in three years. Also of note was the Boston Fed President, Eric Rosengren who sounded rather hawkish in an interview, by hinting that the Fed will need to hike interest rate December and then three to four times “over the course of next year”. In other markets, US stocks ground to their daily new all-time highs, while Oil headed higher as well, on the back of the tensions between Iraqi and Kurdish forces. Gold headed lower, unable to hold on above 1300.
Tuesday will kick off with the Q3 NZ CPI (exp 0.4%mm/1.8%qq) and the Australian New Motor Vehicle Sales, ahead of the RBA Minutes, which may provide the Aud$ with some volatility. Later on, in Europe, the UK CPI (0.3mm%/3.0%mm), PPI, RPI, which will be closely watched for any hint as to whether the BOE are likely to hike rates, next month. The EU CPI (0.4mm%/1.5%mm, Core 0.4%mm, 1.1%yy) is also due, which traders will watch closely, while from the US the data is mostly secondary, including the Capacity Utilisation, Industrial Production, NAHB Housing Market Index and a speech from the Fed’s Harker. Oil traders will watch the API Weekly Crude Oil Stock Inventory while the Kiwi will look to the Global Dairy Trade Index for guidance. The ECBs Constancio and Praet will be speaking, as will the BOE’s Carney.
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|ASX SPI: 5840|