Main market news on September 23
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.
The important release for China may shake the markets
China will release the level of its manufacturing PMI on May 31, at 4:00 MT time. This is a leading indicator of economic health. As China is one of the biggest economies in the world, its data tends to affect the global markets. As a result, higher figures of the indicator affect positively not only the Chinese yuan but also the risk sentiment in the market. Riskier environment increases the demand on the risk-weighted currencies, such as the AUD, the NZD, and the emerging market currencies. On the flipside, the lower actual level of manufacturing PMI for China pulls the Chinese currency down and hurts the risk sentiment in the market. The risk-off sentiment makes the risky assets go down as well.
• If the actual level of manufacturing PMI is higher than the forecasts, the risk sentiment will be on;
• If the actual level of manufacturing PMI is lower than the forecasts, the risk sentiment will be off.
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Main market movements on September 22
The market sentiment remains risk-off amid rising virus cases around the world and fears over new restrictions and lockdowns.
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The New Zealand interest rate is announced on Wednesday at 05:00 MT time.
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The US weekly labor data is out!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.
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