ECONOMIC DATA OF THE DAY

Time	CY	Indicator	Forecast	Actual	Previous
08:30	TA	CPI YoY	1.00%	0.57%	1.23%
12:30	AU	RBA Cash Rate Target	1.50%	n/a	1.50%
15:30	GE	Markit Germany Construction PMI	n/a	n/a	51.6
17:00	EC	GDP SA QoQ	0.30%	n/a	0.30%
17:00	EC	GDP SA YoY	1.60%	n/a	1.60%

(Source: FabTrader)

SPEECHES

• No Speech

OVERNIGHT NEWS

• US: 
• Extremely quiet session from the US as they were out for labour day holiday. 
• EUROPE: 
• Robust set of services PMI across Europe yesterday, EZ coming in at 52.8, down slightly from 53.3 prior but comfortably in expansionary territory. 
• Euro zone retail sales had a strong beat coming in at 2.9% y/y versus consensus expectations of +1.8%.
• UK services PMI came in much stronger than expected, printing 52.9 versus 50. Expectations. The raft of strong UK data continues and saw a rapid rise in the pound post release. Before pairing gains later in the session.

FOREIGN EXCHANGE (INDICATIVE RATES)

Currency	Last	% Change	Overnight Range
DXY	95.84	0.00%	95.55 – 95.90
EURUSD	1.12	-0.08%	1.1139 – 1.1182
USDJPY	103.43	-0.47%	103.15 - 104.15
AUDUSD	0.76	0.12%	0.7563 – 0.7606
GBPUSD	1.33	0.08%	1.3282 - 1.3376

(Source: FabTrader)

COMMODITIES (INDICATIVE RATES)

Currency	Price USD	% Change	Overnight Range
Gold	1327.08	0.14%	1321.91 - 1328.69
Silver	19.51	0.33%	19.30 - 19.56
Oil (BRENT)	47.63	1.71%	46.40 - 49.40
Oil (WTI)	45.07	1.44%	44.06 - 46.53

(Source: Bloomberg and Saxo)

COMMODITIES

Precious Metals: Gold defended its strength after last Friday's disappointing non-farm payroll data, and ahead of ECB's meeting this  week, which could bring further support for the precious if further easing is unveiled. 1330 level is looking to be tested again, and a clear break through will see further strength in gold. 

Oil: September WTI crude rose 1.6% to US$45.17 a barrel but that is well off its intra-day high of $46.53 after the market digested rumours suggesting Saudi Arabia and Russia will cooperate on output freeze and regained rationality on market oversupply. Market resumes downward momentum and is expected to test again low of 43.00 in past three weeks.

FOREX NEWS

• USD traded on the back foot all day triggered by comments from Kuroda at the G20 which the market interpreted as hinting as potentially less stimulus or lack of clarity around stimulus at the Sept 21 BoJ meeting. Risk sentiment was generally buoyant throughout yesterday’s Asian session which saw traders sell USD and buy carry currencies. 
• Emerging Markets saw big inflows yesterday and had a very strong day before an quiet overnight session due to the US holiday. THB bucked the trend traded weaker as the SET tumbled on the market open and rumours of the BoT preventing baht strength circulated. Ahead we expect EM currencies with strong fundamentals to remain bid as the market continues to push for yield. 

 

Asian shares advance, Australia lower as RBA holds rates

Asian shares advanced on Tuesday, while Australian equities remained in negative territory after the Reserve Bank of Australia left rates unchanged as expected.

European markets are also poised for a positive start after the STOXX 600 index briefly touched an eight-month high on Monday. Financial spreadbetter IG expects Britain's FTSE 100 .FTSE and Germany's DAX .GDAXI to open 0.1 percent higher, and France's CAC 40 .FCHI to begin the day up 0.2 percent.

U.S. markets were closed on Monday for Labor Day.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS extended gains to 0.6 percent.

Australian shares slipped 0.4 percent after the RBA's decision to hold interest rates steady at 1.5 percent, as predicted by all 33 economists polled by Reuters, after cutting them to a record low in August. The Australian dollar rose 0.6 percent to $0.7626.

The decision came a day before government data is expected to show Australia notched up 25 years of economic expansion as of the June quarter.
Read More at reuters.com