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RBA minutes, Kent eyed - Westpac

FXStreet (Bali) - Today's focus in Asia is the RBA minutes and a speech by Deputy Governor Kent, notes Sean Callow, FX Strategist at Westpac.

Key Quotes

"Today offers the only interest in Australia’s domestic calendar this week. With no major data releases, the only focus is the RBA. At 10am Syd/8am Sing/HK, RBA Assistant Governor (Economic) Christopher Kent speaks at a Bloomberg summit. Ninety minutes later we see the RBA Board’s minutes from 2 September. The brief statement on the day retained the “period of stability in interest rates” line maintained all this year, struck a cautious tone over the jump in unemployment in July and strengthened the language on AUD, which “remains above most estimates of its fundamental value, particularly given the declines in key commodity prices.” AUD/USD did not react to the statement 2 weeks ago and probably won’t move much on today’s minutes. However, the Kent speech and minutes both remain worthwhile updates on how the RBA sees the balance of risks."

"Asia’s calendar is quiet, limited to China FDI for Aug, not a market-mover. In London/NY we will see the latest Global Dairy Trade auction, presenting ongoing risk to NZD. The 2 Sep auction saw whole milk powder -4.3%. The Eurozone’s key release is the Sep ZEW survey of German investor sentiment, often a handy leading indicator of the more influential IFO business survey. A decline is expected in Sep from Aug’s 44.3 on current conditions and 8.6 on expectations. In the UK we will see Aug CPI, with consensus 1.5% y/y, core 1.8% y/y."

"The US data calendar is unlikely to impact USD as the FOMC’s two day meeting commences. Aug PPI is largely superseded by the already released CPI. July capital flows data (TIC) are also due."

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