Local data headlines the day ahead
A relatively quiet Wednesday coming up, with Australian growth data coming into focus.
The EURUSD continued its struggles, falling below $1.13 overnight. The pair opened at $1.13382 and bumped up to an opening-hour high of $1.13399. the euro remained flat for most of the session until late trading saw it fall to a low $1.12889. It is not far off those lows, currently trading at $1.13008. The GBPUSD showed more resilience than the euro but ultimately succumbed to a stronger USD. The pair opened at $1.31713 and traded flat early, rising to a high of $1.31974 mid-session. The pound could not hold onto those highs as it fell to lows of $1.30961 just a few hours later. It rallied off those lows in late trading and is currently at $1.31512.
The Dow was quite flat yesterday, trying to recover from the sell-off a day earlier. The index opened at 25,811.86 and climbed to a high of 25,899.41 mid-session. The Dow fell to a low of 25,729.41 a few hours later before steadying in the dying hours of the day. It has opened flat this morning and is trading at 25,808.58. The Dax had a reversal of fortunes, clawing back some of the losses suffered the day before. The German index opened at 11,567.16, climbed to 11,622.99 before falling to a low of 11,548.04 midway through the day. It spent the back half of the session climbing to a high of 11,634.06 in the final hour, before closing at 11,628.60.
The day ahead shapes up as an important one for Australia as it releases its quarterly GDP figure. As the Australian economy shows signs of weakness, mainly due to stagnant wages and a falling housing market, these headline figures become even more important. The economy is expected to grow by 0.5%, compared to 0.3% at the last reading.
Other data set for release today includes:
UK – MPC Members Jon Cunliffe and Michael Saunders speak
Canada – Overnight Rate, BoC Rate Statement, Trade Balance, Labour Productivity, Ivey PMI
US – ADP Non-Farm Employment Change, Trade Balance, Crude Oil Inventories, Beige Book, FOMC Member John Williams speaks
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