Last week saw market participants digest a wave of central bank meetings which included the ECB lowering the pace of purchases into Q4 with ECB President Lagarde noting that it was a time for recalibration rather than tapering. The Euro traded lower following the announcement and currently sits below 1.1800 against the greenback. The RBA maintained their current monetary policy stance whilst increasing the duration for their new bond-buying programme citing effects of the delta variant outbreak.
Markets in Asia started the week off cautiously following last week’s five-day losing streak on Wall Street. The ASX 200 was up marginally amid gains within commodity related sectors following the recent press higher in Oil. The asset has climbed above the $70 level in an extension of Friday’s gains despite the renewed strength for the dollar. Recent comments from Goldman Sachs also provided a lift for the asset as the company believes that a significant rally is on the horizon due to increasing levels of scarcity. Back to Asia, the Nikkei 225 was lower and lacked direction whilst the Hang Seng dipped by over 2% amid losses in real estate and tech.
On the Covid-19 front; PM Johnson is to announce that plans requiring a Covid-19 vaccine passport for entry into cinemas and sporting venues are to be dropped. This comes as the nation prepares for a mass inoculation programme within schools set to commence within the next two weeks.
In New Zealand, PM Ardern has announced that the lockdown in Auckland will be extended for an additional week and transition to alert level 3 whilst the rest of the country will remain on alert level 2 until the 22nd of September.
In the cryptocurrency space, Bitcoin fell from its best levels in months as the crypto asset gave back over 11% in the past week. The sharp move lower was witnessed across majority of the large and medium cap crypto’s as Ethereum also snapped lower before finding support above $3,000.
Here is a breakdown of the high impact data releases this week.
03:45 RBA Gov Lowe Speaks. Markets to watch: AUD Crosses
13:30 CPI m/m & Core CPI m/m. Markets to watch: USD Crosses
07:00 CPI y/y. Markets to watch: GBP Crosses
13:30 CPI m/m. Markets to watch: CAD Crosses
23:45 GDP q/q. Markets to watch: NZD Crosses
02:30 Employment Change & Unemployment Rate. Markets to watch: AUD Crosses.
13:30 Core Retail Sales m/m & Retail Sales m/m. Markets to watch USD Crosses
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