The key event of the Asian session will be the Australian employment report. China to publish Housing Price Index. In the United States, weekly unemployment benefit claims, Industrial Production and the Philadelphia Fed report will be published.
Here’s what you need to know on Thursday, November 16:
The dollar rose, supported by a rebound in US Treasury yields. However, the Dollar appears vulnerable in the near term, as cooling Inflation in the US suggests that the Reserve Federal has finished raising interest rates.
The Producer Price Index (PPI) fell 0.5% in October, against expectations of a 0.1% increase. The annual rate fell from 2.2% to 1.3%. These data coincide with those of the Consumer Price Index (CPI) published on Tuesday, which indicate lower inflation. Retail Sales fell 0.1% in October, compared to expectations for a steeper decline of 0.3%. Attention now turns to employment data, with weekly jobless claims due on Thursday.
Wells Fargo Analysts on Retail Sales:
Overall, retail sales fell only slightly in October, barely a tenth from the previous month’s upwardly revised level. Consumer spending may be losing some momentum, but not as much as expected given the recent deterioration in several measures of consumer sentiment.
The PPI data further supports the view that the Fed has completed its tightening cycle. However, the Dollar Index (DXY) recovered from its monthly lows, rising from 104-00 to 104.40, while the 10-year yield rose from 4.42% to 4.52%.
Wall Street stocks were headed for another positive day as investors reacted positively to US data. China’s activity data improved in October, contributing to market optimism, as Industrial Production and Retail Sales exceeded expectations, with an annual increase of 4.6% and 7.6%, respectively. The housing price index will be published on Thursday.
He EUR/USD it retreated from around 1.0900 to 1.0830. The bias remains bullish, but the path to the upside could be complicated due to the better economic performance of the US compared to the Eurozone.
GBP/USD retreated from the 100-day SMA at 1.2505 to 1.2400. The Pound did not benefit from the sharp slowdown in inflation in October. EUR/GBP posted the highest daily close since early May but faced strong resistance at 0.8750.
Rebound in US yields boosted the pair USD/JPY, which rose more than a hundred points to 151.30. In Japan, machinery order and trade data will be published on Thursday.
The AUD/USD pair finished flat on Wednesday around 0.6505 after hitting monthly highs at 0.6542. In Australia, the October employment report will be published, in which an increase of 20,000 jobs is expected. Consumer inflation expectations will also be reported from the Melbourne Institute.
The New Zealand dollar was one of the biggest risers, supported by encouraging Chinese data. The AUD/NZD pair fell for the second day in a row, but remains above the critical support level of 1.0770. The NZD/USD pair retreated after meeting resistance at 0.6055, holding above 0.6000. On Friday, New Zealand will report third quarter wholesale inflation.
Gold fell due to the dollar’s recovery and rising yields, closing around $1,960. The upside remains capped by the 20-day SMA at $1,974. For its part, the Silver It rose strongly again and closed at $23.45.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
