Last week saw market participants digest a poor NFP print as only 235,000 jobs were reported to have been added in the past month suggesting that the FED could delay the timing of tapering until later in the year. The report sent the weakened with the greenback as it moved to its lowest level in a month.
Commodity currencies were amongst the top performers during the week as AUD/USD climbed to its best levels since July. The asset benefited from the broad risk on rally despite a worsening Covid-19 situation in the nation. Heading into the week ahead, the RBA will hold their final policy meeting for Q3 where all eyes will be on QE. At the prior meeting, the board stood by its taper decision which would see the weekly purchases drop down to 4bln AUD from early this month.
Markets in Asia started the week off positively though gains were somewhat limited ahead of the weeks key risk events. The ASX 200 was lower by 0.3% as commodity related sectors suffered a pullback whilst Westpac also cut its 2021 GDP forecast by 2.4%. On the other hand, the Nikkei 225 was higher by 1.8% as optimism continues to grow surrounding the impending leadership change in the nation. US equity futures were contained as North American markets remain closed in observance of Labour Day.
On the Covid-19 front; New Zealand PM Ardern announced that the lockdown restrictions will be eased to alert level 2 for all regions outside of Auckland from Tuesday whilst Australian PM Morrison has doubled down on his plans to end border closures by Christmas despite the increasing daily infections in the nation.
In the cryptocurrency space, Bitcoin broke above $51K for the first time since May as enthusiasts continue to flock to the Cryptoasset following its most recent bull run. Ethereum gained over 22% in the week prior and now trades within the touching distance of the $4,000 mark. The bullish sentiment was also observed within other large and medium cap altcoins as LTCUSD reclaimed $200.
05:30 RBA Rate Statement. Markets to watch: AUD Crosses
15:00 BOC Rate Statement. Markets to watch: CAD Crosses
16:00 Monetary Policy Report Hearings. Markets to watch: GBP Crosses
Tentative BOC Press Conference. Markets to watch: CAD Crosses
12:30 Monetary Policy Statement. Markets to watch: EUR Crosses
13:30 ECB Press Conference. Markets to watch: EUR Crosses
17:00 BOC Gov Macklem Speaks. Markets to watch: CAD Crosses
13:30 Employment Change & Unemployment Rate. Markets to watch: CAD Crosses
13:30 PPI m/m. Markets to watch: USD Crosses
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