Aussie Drops, Yen Rises

Market Reviews

Aussie has seriously declined due to negative wage growth data. Q3 wage price index increased only 0.5% qoq. In annual terms, wages lifted 2.0% yoy. Westpac consumer confidence fell -1.7% this month. Japanese Yen as well as Euro have both surged thanks to positive Gross Domestic Product figures. Japan Q3 GDP rose 0.3% qoq. GDP deflator was up 0.1% yoy. Nikkei dropped -200 points (-0.9%). The Pound remains the weakest.

Senate Republicans will eventually apply a repeal of the Obamacare individual mandate with their version of the tax bill. Mitch McConnell (Senate Majority Leader) claimed that such a move will be necessary. James Bullard (St Louis Fed President) talked about disappointing dynamic of inflation. He even doubts if the latter would reach the objective. At this point, fed fund futures are pricing in 96.7% odds for December’s rate hike.

Today, Britain will release job data. Eurozone will announce trade balance. The US will show Consumer Price Index, retail sales, empire state manufacturing index and business inventories.