US Dollar awaits for FOMC Minutes

Daily Update

Yesterday’s Market

• AUD RBA’s Assistant Governor Christopher Kent speech
• GBP Public Sector Net Borrowing

Yesterday Explained

Australian Dollar found support on RBA’s assistant Governor Christopher’s speech on the economic outlook for Australia. Some of the key points from the speech.

• Australia's GDP growth will be close to its potential rate over the next few years, This is expected to see the unemployment rate likely to edge slightly lower
• Spare capacity in the labor market could remain an issue for some time
• RBA expects the inflation rate to stay low in the short term and then move back to more normal levels based on a gradual rise in wages growth

On the release front, it was another quiet day for EUR/AED as it was showing little movement on Tuesday, following strong gains in the Monday session. On Tuesday, the pair was trading at 3.901. There was good news out of the UK, as the public sector net debt narrowed to GBP 4.3 billion in October, beating the estimate of GBP 5.9 billion. This figure was a strong improvement from the September debt of the GBP 10.1 billion. CBI Industrial Expectations improved to -3 points in November, compared to -18 points a month earlier. The markets had expected a reading of -8 points.

Today Market

• EUR Markit PMI composite, Markit service PMI & Markit manufacturing PMI
• EUR EU financial stability review
• USD Continuing jobless claims & Initial jobless claims
• USD Durable goods orders and Durable goods orders ex transportation, Housing price index, New Home sales and Markit Manufacturing PMI
• USD U.S. FOMC minutes reports

Today’s Focus

Today is a major day in terms of top tier data coming from Euro Zone and USA. Germany and Euro Zone will release reports on Markit PMI composit, Markit service PMI and Markit manufacturing PMI for the month of Nov. These data indicates an overview condition of sales, employment, and their outlook. Mid-day Euro zone will be releasing its financial stability review. This provides an overview of the possible sources of risk and vulnerability to financial stability in the Euro zone.

Early evening US will release key reports such as Continuing jobless claims and initial claims which gives an insight on job market of US. Both reports provides a measure of strength in the US labor market. These reports will be followed by Durable goods orders, Durable goods orders ex transportation, Housing price index, New Home sales and Markit Manufacturing PMI reports from US. These reports indicate large investments made in USA, thus these reports are sensitive to the US economic situation.

The day will end with US FOMC minutes report that reviews the economic and financial condition of United States and determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.