September 25, 2023

Markets Quieten in Anticipation of Another US Report

After the turbulent experience in the market on Wednesday, it became relatively calm on Thursday. The US Dollar index sat in the positive area, but it was still under 110.00 and stocks on the US index traded flat. The ten-year Treasury bonds yield also moved to the side over 3.4%.

More Reports Coming In

The market is currently expecting the retail sales report for the month of August later in the day. It is expected to feature in the economic docket along with the initial job claims for the week, the New York manufacturing survey, as well as the manufacturing survey from Philadelphia. On a final note, the Federal Reserve will release the industrial production numbers for August.

In the course of trading in Asia, the Chinese State Council made an announcement that the Chinese central bank is set to roll out a special fund worth 200 billion Yuan (approximately $28.7 billion) to the country’s commercial banks so they can increase their loan to businesses.

Importantly, the four largest state-controlled banks in China have reduced deposit rates and it takes effect on Thursday, according to Reuters. In spite of that, the composite index in Shanghai closed the day in the negative zone.

Reports from Australia earlier on Thursday showed that the country’s unemployment rates rose to 3.5% last month from 3.4% in July. Meanwhile, participation rates jumped to 66.6% from the prior figure of 66.4% while employment changes came in at over 33,500, lower than the market’s bet of 35,000.

Reactions from Fiat Monies 

After the mixed reactions from the market, the AUD/USD currency pair was seen extending upwards in the direction of 0.15% close to 0.6750 on the day. Reports from New Zealand showed that its GDP grew at a yearly rate of about 0.4% in the course of Q2 as it raced beyond the forecast growth rate of 0.2%. But the New Zealand Dollar struggled to gain strength against the US Dollar, and it traded close to 0.6000.

The Euro and Dollar pair traded under parity on Thursday as the Eurozone’s trade deficit is billed to get broader at €35.5 billion from the prior figure of €30.8 billion.

The British Pound and US Dollar, on the other hand, managed to record some gains on Wednesday and it looks like it has gained stability over 1.15000 as of Thursday. Whereas the Japanese Yen suffered a sharp fall against the Dollar on Wednesday while there are speculations that the BOJ might intervene in the market.  

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