SGD

• Hold the line. US equities at record highs, while shifting spreads are supporting the USD. EUR at multi-month low. AUD drifting back.• AUD divergence. AUD losing ground to the stronger USD. But it is holding up on the crosses. We expect these trends to continue.• Data flow. AU business conditions out today, as is the UK jobs report. Several US Fed members speaking over the next few sessions. It has been a quiet start to the week. Unsurprising given the US bond market was closed for Veteran’s Day and the lack of data releases/new information to move the dial....

• Stronger USD. A positive US jobs report has seen US rate expectations reprice higher, supporting the USD. AUD has fallen to mid-September levels.• China reopening. Financial markets in mainland China reopen today after a holiday. This will be in focus, as will a briefing by its economic planners.• Local events. Consumer confidence, business conditions, RBA meeting minutes, & speech by RBA Dep. Governor Hauser also on the radar. Last Friday’s stronger than anticipated monthly US jobs report generated a market jolt. The robust job creation (non-farm payrolls rose 254,000 in August), positive revisions to history, dip in the unemployment...

• Shaky sentiment. After a strong run equities slipped overnight. Bond yields rose & the USD clawed back ground. AUD & NZD dipped.• AU CPI. Monthly headline CPI indicator decelerated as government measures washed through. But progress on core/services inflation is more gradual.• Event radar. Several US Fed members speak tonight. US jobless claims & durable goods released. Locally, RBA’s FSR & job vacancies are due. After a strong run the positive risk sentiment that has washed through markets reversed course slightly over the past 24hrs. There has been little top-tier economic data released globally, and although geopolitical tensions in...