On Tuesday, the Reserve Bank of Australia will publish the minutes of its September meeting. Later, Eurostat will publish the final CPI (Consumer Price Index). In Canada, inflation data for August will be published, while in the United States, housing starts and construction permits will be reported.
Here’s what you need to know on Tuesday, September 19:
The Dollar Index (DXY) saw a modest decline, but remained above 105.00 on a calm Monday. It marked the first daily loss after nine consecutive days of gains. This correction occurred during a quiet session as market participants awaited central bank meetings. On Wall Street, stocks opened the week with marginal gains, while US Treasury yields remained relatively stable.
Real estate data, including housing starts and construction permits, will be released on Tuesday. The FOMC (Federal Open Market Committee) meeting begins. No changes in interest rates are expected, but market attention will focus on the dot chart, which represents policymakers’ projections for future interest rates, as well as the Fed Chairman’s press conference. ,Powell.
ANZ on FOMC meeting:
We continue to view Fed policy as highly data-dependent, yet patient, with most officials open to further rate hikes if appropriate. Our view is that the Fed has ended its tightening cycle, but risks remain that further rate hikes will be necessary.
The EUR/USD pair rose for the second day in a row and found resistance in the 1.0700 area. However, the general trend remains bearish. Eurostat will publish the final reading of the Eurozone Consumer Price Index (CPI), which is expected to offer no surprises. In addition, it will publish the Current Account figures for July.
The Pound continued to show weakness; The GBP/USD pair failed to recover beyond the 1.2400 level. It ended the day unchanged after reaching new monthly lows. For its part, the EUR/GBP pair recorded its highest daily close in a month, surpassing the 0.8600 signal. UK consumer inflation data will be released on Wednesday, and the Bank of England will announce its monetary policy decision on Thursday.
USD/JPY traded sideways and recorded slight losses. The crucial resistance level to watch is around 148.00. The Bank of Japan will announce its monetary policy decision on Friday.
USD/CHF held near September highs and settled around 0.8670; continues looking for the 0.9000 area. Switzerland will report Trade data on Tuesday, and on Wednesday, the Swiss National Bank (SNB) will hold its monetary policy meeting; A rate increase of 25 basis points is expected.
The Canadian Dollar continued its upward trend, causing the USD/CAD will hit its lowest daily close in over a month, falling below 1.3500. The next key support level to watch on the downside is the 200-day SMA at 1.3460. On Tuesday, Canada will release the Consumer Price Index (CPI) for August, with expectations for the annual rate to rebound to 3.8% from 3.3%. This would signal a second consecutive acceleration of the CPI.
The AUD/USD pair maintained a sideways movement, hovering around the 20-day SMA at 0.6420. The Reserve Bank of Australia (RBA) is scheduled to release the minutes of its August monetary policy meeting, at which policymakers decided to keep the cash rate unchanged at 4.1%.
The NZD/USD pair rose back above 0.5900. The pair lacks a clear direction and remains tilted lower as the price remains below the 20-day SMA. The third quarter Westpac consumer survey will be published on Tuesday.
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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.