Morning Markets: Could Fed surprise with a September hike?
- US: Housing Starts (1230 GMT)
- ASX has apologised for yesterday’s outage that forced suspension of trading
- Australian business sales indicator up 0.6% for the month
- Crude oil sank 0.5% to $43.07/barrel in New York
- Milk futures climbed to $3,000/tonne ahead of a Global Dairy Trade auction
- The NZD and the Taiwan dollar led gains among major currencies in mid trading
- Weak US data have pushed the probability of a Fed hike this week to 20%
- Barclays and BNP say the Fed will raise rates on Wednesday
- Aussie 10-year bonds fell for the ninth day boosting yields to 2.13%
- Asian stocks were largely flat ahead of BoJ and Fed decisions
- AUD hit overhead resistance around 0.7570 and was back at 0.7536 in early trade
- JPY was steady at 101.90 to the USD following a 0.4% advance in the last session.
- The NZD appreciated 0.4% and the Taiwan dollar was up about 3% in Asia trade
- EURUSD trading flat after yesterday's abortive attempt at the 1.12 handle
- Sterling holding steady above 1.30 for the moment
From the Floor
Fed rates. “I wish that they would go ahead and hike but that would be a tremendous shock to markets,” says Hardy
BoJ watch. “USDJPY vols are a touch lower than for the Bank of Japan meeting in July but still close to the highest since the start of Abenomics,” says Larsen
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US housing starts are expected to sustain a short-lived dip this month, writes James Picerno, before bouncing back.
Asian markets opened slightly lower this morning as the focus remains on the BoJ and FOMC meetings this week, writes Saxo's APAC trading team.
When in doubt do nothing
December is the new September, writes Juhani Huopainen, when it comes to action from central banks.
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