September was the worst month for S&P 500 since the initial pandemic panic at the beginning of 2020. Next week will host the release of the US jobs data for September, an import report in terms of future Fed policy moves. Apart from that, investors will also focus on rate decision from Australia and New Zealand as well as OPEC output decision. Be sure to watch USDCAD, OIL and AUDNZD next week.
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A time has come for the release of key US data - NFP report for September (Friday, 1:30 pm BST). Fed said that tapering will be officially announced in the coming months if the economy continues to perform in-line with forecasts. Half a million jobs are expected to have been added in September, almost twice as many as in August. USDCAD will be on the watch around the release time as the Canadian labour market will be released simultaneously. The pair made a break above 1.2700 at the start of previous week but bulls failed to sustain the move.
Brent reached $80 per barrel at the beginning of the week, the highest level since October 2018. Prices slipped later on as risk-off moods arrived at the markets. Oil will remain in the centre of attention next week as OPEC+ is set to make a decision on output on Monday. Reuters reported that the cartel may even decide to increase output by more than 400k bpd to ease supply issues. However, such a move could be negative for prices.
The Reserve Bank of New Zealand was set to become the first developed country to hike rates but new restrictions forced central bankers to postpone the decision. Nevertheless, the hawkish case looks intact and RBNZ is expected to deliver a rate hike on Wednesday, 2:00 am BST. Meanwhile, the Reserve Bank of Australia is seen staying on hold when it announces the decision on Tuesday, 4:30 am BST. AUDNZD has been trading higher recently but it may change if RBNZ decides to deliver even more hawkish message than expected.