Out of Asia
For the Aussie Dollar:
It’s a relatively busy week ahead on the economic calendar.
On Wednesday, consumer confidence figures are in focus ahead of September employment figures on Thursday.
Expect the employment figures to have a material impact on the Aussie Dollar.
At the end of the week, new home sales figures will likely have a muted impact on the Aussie.
On the monetary policy front, RBA Governor Lowe is scheduled to speak on Thursday. Expect the Aussie Dollar to be particularly sensitive to any chatter on monetary policy.
While the stats will influence, economic data from China and U.S politics will be the key drivers.
The Aussie Dollar ended the week up by 1.10% to $0.72400.
For the Kiwi Dollar:
It’s also a relatively quiet week ahead on the economic calendar.
Key stats include Electronic card retail sales figures on Tuesday and Business PMI numbers on Friday.
Expect both sets of numbers to influence in the week.
While the stats will influence, economic data from China and updates from Washington will be the key drivers.
From China, trade, industrial production, and inflation figures will influence in the week.
The Kiwi Dollar ended the week up by 0.38% to $0.6666.
For the Japanese Yen:
It is a relatively quiet week on the economic calendar.
Key stats include core machinery orders, finalized industrial production, and tertiary industry activity figures.
We would expect the core machinery order numbers to garner the greatest interest in the week.
The key driver for the Japanese Yen, however, will be chatter from Capitol Hill and the U.S Presidential Election race.
The Japanese Yen ended the week down by 0.31% to ¥105.62 against the U.S Dollar.
Out of China
It’s a busy week ahead on the economic data front.
Mid-week, September trade figures will draw plenty of attention. The markets will be eyeing both the import and the export figures.
The focus will then shift to inflation, industrial production, and unemployment figures due out on Thursday.
Fixed asset investment figures are also due out but would likely have a muted impact on the markets.
The Chinese Yuan ended the week up 1.42% to CNY6.6947 against the U.S Dollar.
It’s last chance saloon for Britain and the EU to come up with the needed compromises to deliver a trade agreement.
Expect plenty of chatter as the markets continue to pin hope on a last-minute agreement.
Failure to come up with a deal will sink the Pound, which has very little going for it at present.
The UK economy is in trouble and the government is expected to inflict more pain in the week ahead. A sharp pickup in new COVID-19 cases is going to force the government to reintroduce containment measures this week.
There’s never a dull moment in U.S politics and the markets have abandoned Trump and his quest for a 2nd term.
Trump and Biden are scheduled to go head-to-head in the 2nd of 3 debates on Thursday.
Following Trump’s hospitalization, however, the debate had been changed to a virtual debate. The U.S President had responded by refusing to take part, which led to the cancellation of this week’s debate. For Trump, the next debate is still on for 22nd October. It may be too late, however… Trump’s latest loss was a court decision to allow the use of drop boxes and mobile sites to collect mail-in ballots in Pennsylvania. As a swing state, the Republicans are eager to overturn the ruling… It would be a blow should Trump also lose the appeal…
With the polls favoring a Biden/Harris clean sweep, the markets have warmed to Biden’s policies.
While a repeal of Trump’s tax bills is expected, Biden is expected to deliver greater fiscal support.
Don’t expect Trump to go down without a fight, however, which should make things interesting…