Highlights
The North American date calendar is relatively light this week after October data on Friday showed moderating employment and wages growth in both the US and Canada.
On the policy front, the focus is on Australia's central bank after the Federal Reserve and the Bank of England paused in rate hikes for a second straight last week, following in the Bank of Canada's footsteps and after the first no change in policy in 11 meetings by the European Central Bank.
In Germany, manufacturing orders are expected to slip 1.1 percent on the month in September after rising an above-forecast 3.9 percent in August and slumping 11.3 percent in July.
The UK construction purchasing managers' index is seen rising to 46.0 in October from September's 45.0, which was unexpectedly weaker than the consensus forecast of 49.9 and August's 50.8.
Japan's real household spending is forecast to post its seventh straight drop on the year in September, down 3.5 percent, worsening from a 2.5 percent dip in August, as high costs for daily necessities reduced the appetite for non-essential items and consumers became weary amid the lingering heat wave. On the month, expenditures are seen down 0.8 percent after high demand for summer clothing triggered an above-forecast 3.9 percent rebound in August. Pent-up demand for eating out and traveling appears to have lost some steam.
At 2:30 p.m. AEDT Tuesday (10:30 p.m. EST Monday/0330 GMT Tuesday), the Reserve Bank of Australia will announce its policy decision. It is widely expected to raise the cash rate target by 25 basis points to 4.35 percent after leaving it unchanged at 4.10 percent for the fourth straight meeting in October. The central bank has been monitoring the impact of its cumulative interest rate hikes totaling 4 percentage points since the current tightening cycle began in May last year. Consumer inflation picked up to 5.6 percent in September from 5.2 percent in August while the annual rate in the third quarter eased to 5.4 percent from 6.0 percent, although it is still well above the RBA's target range of 2.0 to 3.0 percent.
China's trade surplus is expected to have widened to $82.0 billion in October from $77.71 billion in September.
On the policy front, the focus is on Australia's central bank after the Federal Reserve and the Bank of England paused in rate hikes for a second straight last week, following in the Bank of Canada's footsteps and after the first no change in policy in 11 meetings by the European Central Bank.
In Germany, manufacturing orders are expected to slip 1.1 percent on the month in September after rising an above-forecast 3.9 percent in August and slumping 11.3 percent in July.
The UK construction purchasing managers' index is seen rising to 46.0 in October from September's 45.0, which was unexpectedly weaker than the consensus forecast of 49.9 and August's 50.8.
Japan's real household spending is forecast to post its seventh straight drop on the year in September, down 3.5 percent, worsening from a 2.5 percent dip in August, as high costs for daily necessities reduced the appetite for non-essential items and consumers became weary amid the lingering heat wave. On the month, expenditures are seen down 0.8 percent after high demand for summer clothing triggered an above-forecast 3.9 percent rebound in August. Pent-up demand for eating out and traveling appears to have lost some steam.
At 2:30 p.m. AEDT Tuesday (10:30 p.m. EST Monday/0330 GMT Tuesday), the Reserve Bank of Australia will announce its policy decision. It is widely expected to raise the cash rate target by 25 basis points to 4.35 percent after leaving it unchanged at 4.10 percent for the fourth straight meeting in October. The central bank has been monitoring the impact of its cumulative interest rate hikes totaling 4 percentage points since the current tightening cycle began in May last year. Consumer inflation picked up to 5.6 percent in September from 5.2 percent in August while the annual rate in the third quarter eased to 5.4 percent from 6.0 percent, although it is still well above the RBA's target range of 2.0 to 3.0 percent.
China's trade surplus is expected to have widened to $82.0 billion in October from $77.71 billion in September.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
