This week, the spotlight is likely to fall on the new round of trade talks between the US and China, with investors eager to find out whether the world’s two largest economies will get closer to reaching common ground in their trade conflict. We also get the US CPIs for September, where a disappointment could increase the chances for another rate cut by the Fed at its upcoming policy gathering. Canada’s employment data is also on the agenda, and it would be interesting to see whether a soft report would raise speculation for a dovish shift by the BoC soon.
Monday appears to be a relatively light day in terms of economic releases and indicators.
On Tuesday, during the Asian morning, we get the NAB business survey for September. Although usually this is not a major market mover, given the RBA’s emphasis on the labor market, we prefer to pay close attention to the Labour Costs index for the month, which, in August, accelerated to +1.2% qoq from +0.9% qoq in July. At its latest meeting, the RBA decided to cut interest rates by 25bps, to a new record low of +0.75%, and reiterated that they remain prepared to ease policy further if needed. According to the...
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