Another set of hawkish comments from Fed and ECB did not cause sell-off in stock indices, however the US dollar pulled back from a 20-year peak. Now markets are turning their attention to another piece of crucial US data - CPI report for August which may affect Fed's view on future rate hikes. Also retail sales report and slew of other macroeconomic data from the US coupled with jobs report from Australia should provide additional volatility on the markets. When it comes to Asian markets, investors will focus on the Xi-Putin meeting as well as Chinese industrial output and retail sales data. Be sure to watch US500, CHNComp and AUDUSD in the week ahead!
US500
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Create account Try a demo Download mobile app Download mobile appA key macro data of the week - US CPI inflation report for August - will be released on Tuesday at 1:30 pm BST. Markets are eager to see whether US price growth will decelerate further. Headline CPI is expected to drop from 8.5% to 8.1% YoY. However, the core gauge is expected to tick slightly higher from 5.9 to 6.1% YoY. The Fed is keen to keep increasing interest rates to bring down inflation, therefore deceleration in price growth should be negative for the US dollar and in turn positive for stocks and gold.
AUDUSD
AUDUSD pair will get a chance to move on Thursday, when Australia employment data and RBA Bulletin will be released at 2:30 am BST. The market consensus is for a 50,000 increase in jobs and for the unemployment rate to remain at 3.4%. Also on Thursday, investors will be served several interesting data releases from the US at 1:30 pm BST, including retail sales for August, Philadelphia Fed Manufacturing Index and NY Empire State Manufacturing Index both for September.
CHNComp
China's retail sales, home sales and industrial production figures will be released on Friday 3:00 am BST and should provide more details regarding the condition of the second largest economy in the world, following better than expected inflation figures from Friday. Also investors will follow Putin-Xi meeting in Uzbekistan on Thursday to see whether and in what fields Russia and China plan to boost cooperation.
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