Key events to keep the market guessing - AmpGFX

Globally, the rest of the week includes a number of interesting data points that may further complicate market trends, according to Greg Gibbs, Analyst at Amplifying Global FX Capital Pvt Ltd.

Key Quotes

“There has been a significant retreat in Chinese steel-making commodity prices in recent days and Chinese PMI data are due on Wednesday and Thursday.  Chinese market watchers may be nervous after the July monthly activity data were weaker than expected.  This could pose a threat to the AUD and EM markets.”

“A number of key Australian data points are coming in the next week or so, leading up to its GDP release and RBA policy statement next week.”

“We are interested to see if the Q2 capital expenditure survey (Thursday) starts to reveal strength more consistent with the rebound in business confidence, non-residential building approvals, and stronger government infrastructure spending.  We see this as an upside risk for the AUD.”

“From Thursday and into next week we see many global PMI data points that will help establish how strong the global economy is.”

“US PCE inflation data are released on Thursday and payrolls on Friday.  While Harvey may have injected uncertainty, the market will still be influenced by what the data says about the pre-Harvey economic trajectory.”