AUD

• Push-pull. Pockets of vol. in some asset classes. US equities eased, bond yields consolidated & USD tread water. AUD & NZD held steady.• US CPI. US Gov. shutdown ongoing. But US CPI will be released Friday night. Diverging trends between ‘goods’ & ‘services’ prices. USD vol. likely.• AU macro. RBA Gov. Bullock speaks tomorrow. Q3 CPI due next week. Firmer inflation pressures may temper enthusiasm about RBA rate cuts. Global Trends There were pockets of volatility across some asset classes overnight on the back of some news headlines. But on net the moves were rather modest. Reports the Trump...

• Market swings. A few bursts of volatility the past few weeks. Sentiment was positive overnight with the S&P500 rising & AUD clawing back lost ground.• US data. US Government Shutdown remains in place. But given its importance the delayed US CPI report will be released this week (Fri night AEDT).• RBA pricing. Uptick in AU unemployment has seen markets price in a greater chance of another RBA cut. Q3 CPI due next week. This may temper views. Global Trends There have been a few bursts of volatility over the past week or so stemming from a mix of renewed...

• Push-pull forces. US shutdown still in place. Geopolitics outside US generates some vol. EUR & JPY lose ground. AUD & NZD edge up a little.• Japan politics. Shock leadership selection jolted Japanese markets. Nikkei surged & JPY weakened on prospect of fewer rate hikes & fiscal stimulus.• RBNZ meeting. RBNZ expected to cut rates tomorrow. Debate is on the size with markets split between a 25bp & 50bp move. NZD volatility anticipated. Global Trends The US Government Shutdown, which kicked off at the start of October, remains firmly in place and there appears to be little movement from either...

• Holding on. Markets take the latest US shutdown in stride. US equities edged up while bond yields slipped back. USD & AUD tread water.• US shutdown. No real sense of urgency to strike a deal quickly. US shutdown could drag out. This might be a negative for US growth & the USD.• Data void. US government shutdown also means US economic data, such as Friday’s non-farm payrolls report, may be put on hold. Global Trends The latest US Government Shutdown kicked off yesterday and financial markets have so far taken it in stride. European equities registered solid gains (EuroStoxx600...