US stocks plunged on Monday in thinner trade, with the S&P 500 posting its biggest daily decline in four weeks. Coronavirus cases have flared up and uncertainty about a fiscal relief bill in Washington soured the sentiment for a US economic recovery.US 2yr treasury yields fell from 0.16% to 0.15%, while the 10yr yield fell from 0.83% to 0.79%. Commodities, Brent crude oil futures fell 3.6% to $40.25, copper fell 1.6%, iron ore fell 0.5% to $115.10, and gold fell 0.1%.
AUD/USD: 0.7103 – 0.7146
EUR/USD: 1.1804 – 1.1847
GBP/USD: 1.2993 – 1.3075
USD/JPY: 104.80 – 105.05
USD/CAD: 1.3162 – 1.3225
NZD/USD: 0.6670– 0.6697
AUD/JPY: 74.47 – 74.93
AUD/NZD: 1.0644 – 1.0670
Recovery from last week lows at 0.7020 has stalled on Monday below 0.7160. The pair has been moving within previous ranges, supported above 0.7100. all eyes will be on the speech of the Deputy Governor of the Reserve Bank of Australia, Guy Debelle and the Assistant Governor Michele Bullock. The dovish monetary policy minutes released last week have increased the expectations of a rate cut in November. Any more evidence on that line might increase negative pressure on the Aussie.
Event Risk Data Today
Australia: RBA Deputy Governor Debelle and Assistant Governor (Financial System) Bullock will appear before the Senate Economics Legislation Committee (13:30 AEST). Assistant Governor Bullock will also give a speech at the Ayr Chamber of Commerce at 18:30 AEST.
New Zealand: Exports are expected to soften in September, widening the trade deficit (prior: -$353m, market f/c: -$1015m).
China: Industrial profits saw double-digit growth of 19.1%/yr in August, reflecting continued recovery in production and stronger exports.
Euro Area: M3 money supply is anticipated to moderate in September (prior and market f/c: 9.5%), though the second wave of cases is raising the prospect of additional easing.
US: Durable goods orders are set to track sideways in September at an expected 0.5% pace as transport and machinery orders slow. The forward-looking Conf. Board’s Consumer Confidence is also likely to be little changed at 101.8. Strong demand and low interest rates have seen FHFA house prices rise 6.5%yr, though depleted inventories are a potential headwind for further gains (prior: 1.0%, market f/c: 0.7%).