Markets Close the Week with a Whimper Rather than a Bang
It turned out to be a relatively calm market over the course of last week’s trading despite a wide range of fresh data inputs. In the US the major indices all experienced small changes over the week, the Dow closed down 1%, the S&P down 0.3% and the Nasdaq rose 0.4%. Currencies had a similar experience with the majority of the majors trading in very familiar territory. US treasuries dropped off with some signs of the Fed making a dent in the inflation situation, but there does feel like there is more to go in this story as we enter the new trading week.
Australian Data Heavy Week Ahead
Aussie dollar traders are set to have a busy week ahead of them as they are hit with several new data releases. They come on the back of the RBA’s surprise rate hike in the first week of the month and some traders will be wondering just how perspective the central bank was. First up on Tuesday, investors will get more insight into that decision when the RBA releases its Monetary Policy Meeting minutes. It is all about the resilient job market for the next couple of days with the Wage Price Index data out on Wednesday and the Employment data out on Thursday. The RBA will be watching these numbers as closely as the rest of the market to see if subsequent rate hikes are starting to hit the job market and therefore inflation.
Politics and Data Ahead for Traders Today
The Asian session has kicked off the week with a focus on emerging markets as election results in Thailand and Turkey have dominated headlines. However, expect the market to shift its view back to the major markets as the day progresses and the trading week gets into full swing. There is little to challenge the status quo in terms of data releases on the calendar in the first two sessions of the day although expect a strong investor focus again on the US once the New York session begins. Investors are heavily focused on the situation with the US debt ceiling and had some positive news overnight although until a deal is signed expect to see concerns increase with time. The Empire State Manufacturing Index data is due out today with an expectation of a drop of 3.7 points so expect some volatility around this number.
