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13 Nov 2023

All eyes on US CPI

• Quiet trade. US equities & the USD consolidated, while yields slipped back a little. The AUD ticked up, although this follows last week’s negative run.• US inflation. US CPI released tonight. There are a few push-pull factors are play this month. Reaction in US yields & the USD is likely to be binary.• Event risks. The calendar is packed with other releases the next few days. China data batch & AU wages due tomorrow, & US retail sales is tomorrow night. It has been a subdued start to the week across markets with investors marking time ahead of the...

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Weekly Chartbook

Sovereign risk isn’t likely to impact US rates. Oil markets are trading defensively. Inflation drivers have shifted. Retail sales remain far above pre-pandemic trend levels. China’s property bubble is still deflating.

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Majors settle into ranges ahead of data-intensive week

Ahead of a week in which hard data will take precedence over central bank jawboning, equity indices are slightly softer, oil prices are holding firm, Treasury yields are flat, and all major currencies look firmly rangebound. Foreign exchange markets continue to ignore signs of dysfunction in the US political system: The dollar remains unbowed after the ratings firm Moody’s lowered its outlook on US debt to “negative” from “stable”, putting it on course toward joining Standard & Poor’s and Fitch in downgrading the country’s sovereign credit rating. And with newly-minted Speaker Mike Johnson’s can-kicking bill likely to face a vote...

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