It has been a choppy session, with the Euro supported by some decent manufacturing PMIs (EU rose to 58.4, up from 58.1, beating expectation of 57.8; Germany dropped to 60.5, down from 60.6, but beat expectation of 60.0; France rose to 56.7, up from 56.1, beating expectation of 56.0), while the US$ was underpinned on hopes of passing Donald Trump’s tax plan before the end of the year and also by a decent Mfg PMI of its own (US Mfg Flash PMI Oct, 55.7, 54.8 prev). A report that John Taylor has support from a group of Republican Senators to be the next Federal Reserve chief also helped to underpin the dollar and offset a TV report that 3 Senators will not support the tax bill. It was all rather messy, with the end result being a weaker Chf, Gbp, Aud and Nzd, a rangebound Yen and a slightly firmer Euro. Elsewhere, the Dow has made yet new all time highs while the metals and WTI are rangebound, although WTI looks on the verge of an upside break. US 10 Year yields also underpinned the dollar and are potentially about to break higher after having closed right up against the important 2.4% resistance level (close @ 2.425%).
Wednesday will begin with the Australian inflation data (exp 0.8% mm, 2.0% yy, Trimmed Mean 0.5% mm, 2.0% yy) and after that it all goes quiet until the release of the German IFO Business Climate/Expectations and the Q3 UK Provisional GDP (exp 0.3% qq, 1.4% yy). From the US we get the Sept Durable Goods Orders (exp 0.5% mm, Ex-transportation 0.5% mm), New Home Sales (exp 0.55 mio) and the EIA Crude Oil Stocks Weekly Change. There will also be a Interest Rate Decision from the Bank of Canada, where no change is expected.
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|ASX SPI: 5896|