Global Themes

USD stages comeback as Chinese data spooks markets

The US dollar was stronger yesterday as poor Chinese data added to market nerves that were already frayed after the weekend’s attack on a Saudi oil facility.

Chinese industrial production fell to 4.4% in August – the weakest reading in 17 years – and adds to growing concern about a slowdown in the Chinese economy.

Chinese retail sales and fixed asset investment figures were also reported below forecasts.

Reversal

The British pound and euro were both lows after a disastrous meeting between UK prime minister Boris Johnson and EU officials overnight.

Ongoing worries about Brexit, due to occur on 31 October, weighed on the pound and euro.

RBA minutes

The early focus today will be on the Reserve Bank of Australia minutes.

The RBA is expected to continue to remain on hold as it considered the impact of its back-to-back rate cuts in June and July.

The RBA minutes are due at 9.30am AEST.

Tonight, US industrial production will be watched ahead of Thursday morning’s Federal Reserve decision.