Yesterday, the main players in the market changed for each market. In the Tokyo market, the yen strengthened against the backdrop of China risk. In the following London market, when the movement slowed down in the early stages, euro buying became the main player in response to remarks by ECB senior officials. When it entered the NY market, the dollar buying movement spread rapidly along with the decline in US stocks.
The spread of infections and the spread of protests in China have become risk factors and have disrupted the market. Chinese health authorities and others are expected to hold a press conference at 4:00 pm today, and the market seems to be expecting an easing of the zero-corona policy. However, if the stance of maintaining the zero-coronavirus policy is emphasized, the market will become unstable again. This is an event worth noting.
The Eurozone Consumer Price Index will be released in the middle of this week. It is expected to increase by about 10.4% from the previous year, and the growth is expected to slow down from the previous +10.6%. However, continued double-digit inflation would be unacceptable to the financial authorities. Markets are increasingly anticipating a significant interest rate hike at the ECB Governing Council meeting in December. Today, as a prelude to that, the preliminary German consumer price index will be announced.
In addition, this week there are many notable events originating in the United States, such as a speech by Fed Chairman Powell and the US employment statistics. Friday’s US jobs report will be preceded by a series of US economic indicators, including the ADP jobs report, JOLT job openings, personal income and spending, the PCE core deflator and the ISM manufacturing index. The ISM index is expected to fall below 50, which is also expected to support the recent slowdown in interest rate hikes.
Ahead of the series of events, we would first like to confirm whether the Chinese risk trend has stabilized.
The Chinese authorities, which are responding strictly to the corona protests, have suggested some concessions, so it seems that the AUD is being repurchased.
Today, AUD is changed to a buying perspective.