The US$ has spiked higher following the FOMC meeting at which the Fed kept the Fed funds target range at 1.00-1.25% as widely expected, while also confirming that the balance sheet normalisation process will commence in October. In terms of the growth outlook, the GDP projection for 2017 and 2019 were revised higher while the unemployment rate forecast for 2018 and 2019 were revised down. The overall indication therefore remains in place and suggests that the Fed will raise rates once more in 2017 and three times next year. In other markets, the metals finished lower, under pressure from the firmer dollar, while US equity indices closed at another all time high, underpinned by the positive outlook for the economy.
A busy Thursday will kick off with the NZ Q2 GDP (expect; 0.8%mm, 2.5%yy), the RBA Monetary Policy Statement and the BOJ Interest Rate Decision (no change expected), Statement and Press Conference. Europe will contend with the European Bulletin (which replaced the previous ECB Bulletin) and a speech from Mario Draghi, while the US will get the Sept Philadelphia Fed Mfg Survey and the weekly Jobless Claims.
The levels in this table are a guide only.
|INDICES / COMMODITIES|
|ASX SPI: 5696|