Sentiment soured as markets await mid-level data releases

Here’s what you need to know on Tuesday, October 8:

Markets took a cautious tone early Tuesday as investors await the next batch of macroeconomic data. The US economic file will include the NFIB Business Optimism Index for September and RealClearMarkets/TIPP Economic Optimism Index data for October. The US Bureau of Economic Analysis will also release merchandise trade balance figures for August. Later in the US session, several Federal Reserve (Fed) policymakers are scheduled to give speeches.

The National Development and Reform Commission (NDRC), China’s state planner, said on Tuesday that downward pressure on China’s economy is increasing. “China’s economy faces more complex internal, external environments,” the NDRC noted. After Wall Street’s main indexes closed the first day of the week in negative territory on Monday, U.S. stock index futures traded marginally lower early Tuesday, reflecting the sour mood. Meanwhile, the US dollar (USD) The index continues to move sideways near 102.50 after failing to make a directional move in either direction on Monday.

Data from Germany showed industrial production rose 2.9% month-on-month in August. This reading followed July’s 2.4% contraction and came in better than market expectations of 0.8%. EUR/USD struggling to benefit from bullish data and trading marginally higher on the day below 1.1000.

In the minutes of its September policy meeting, the Reserve Bank of Australia (RBA) said policymakers had discussed options for cutting interest rates and added: “Scenarios for cutting, holding and raising interest rates are all conceivable, given given the considerable uncertainty about the economic situation. perspective.” Speaking at the Walkley Foundation, RBA Deputy Governor Andrew Hauser noted that they will act on policy when inflation stops being high and sticky. After posting heavy losses on Monday, AUD/USD continued to push lower in the Asian session on Tuesday. At press time, the pair was trading at its lowest level since mid-September, below 0.6730.

Japanese Economy Minister Ryosei Akazawa said on Tuesday that a drop in real wages for the first time in three months was not good news. Akazawa also said the Japanese government will create an environment where real wages continue to rise. USD/JPY showed no reaction to these remarks and was last seen fluctuating in a narrow channel around 148.00.

GBP/USD it fell amid risk aversion in the second half of the day on Monday and ended the day below 1.3100. The pair are looking to make a comeback early on Tuesday.

Gold posted modest losses for the fourth consecutive day on Monday. XAU/USD remains on the back foot and is trading below $2,640 in European morning Tuesday.