– US indices finished yesterday’s trading higher. S&P 500 gained 0.18%, Dow Jones moved 0.26% higher and Nasdaq jumped 0.63%. Russell 2000 rallied 2.65%
– Moods weakened during the Asian session, especially in China, after Chinese authorities decided to halt classes at more than a dozen of schools in Beijing. Covid-19 outbreaks are the reasons
– Nikkei dropped 0.4%, S&P/ASX 200 declined 0.6% and indices from China traded over 1% lower. Kospi outperformed, gaining 1.2%
– DAX futures point to a slightly lower opening of today’s European session
– Reserve Bank of Australia left interest rates unchanged at the meeting today and purchases of government bonds are set to continue at A$4 billion per week. However, RBA decided to drop a 0.10% target on 10-year 2024 government bond yield
– RBA Governor Lowe said that he thinks the market overreacted to the latest inflation data. He said that it is extremely unlikely for inflation to jump beyond projections
– South Korean CPI inflation accelerated from 2.6 to 3.2% YoY – the highest level since January 2012
– New Zealand building permits dropped 1.9% MoM in September
– Precious metals are trading mixed – gold and palladium gain while platinum and silver drop
– Bitcoin, Ethereum and Dogecoin climb. Chainlink, Litecoin and Tezos pull back slightly
– USD and JPY the best performing major currencies while AUD underperforms the most
AUDUSD is plunging today following RBA’s decision to drop a target bond yield. While the Bank sees a possibility of bringing the first rate hike forward from 2024 to 2023, Governor Lowe hinted that rate hike in 2022 is extremely unlikely. AUDUSD pulled back from the 200-session moving average (purple line) and dropped below the 0.75 handle.
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