Fed Waiting for Better Data, China PMI Up Next
The FOMC statement indicated that growth had been slower than believed in the first half of 2013 but said it would pick up going forward. Officials also cautioned on inflation, something that could weigh against September tapering. Overall, the changes in the statement are unlikely to sway those hardened toward or against tapering but gains the gold and bond market suggest a slightly smaller chance of a Sept taper.
The main focus of the Fed and the market will continue to be economic data and there were three important data points in the lead-up to the FOMC announcement. ADP employment rose 200K in July compared to 180K expected, boosting the dollar to the highs of the day. The Chicago PMI was mostly overlooked but slipped to 52.3 compared to 54.0 expected.
The key release of the day was Q2 GDP but it featured benchmark revisions all the way back to 1929. The economy grew 1.7% in Q2, beating the 1.0% but first quarter growth was revised to 1.1% from 1.8%. The takeaway is that growth has been slow this year but could be accelerating however there were numerous caveats from the report on either side of the debate. Again, it adds to the focus on upcoming data.
The Australian dollar is stuck in a technical black hole and falling deeper. AUD/USD broke below 0.9000 to a fresh three-year low at 0.8927 in early Asia-Pacific trading. A series of second-tier releases from Australia may get some attention with the RBA so close but the main mover is the Chinese official manufacturing PMI at 0100 GMT. Expectations are for a 49.8 reading.Act | Exp | Prev | GMT |
---|---|---|---|
Chicago PMI | |||
52.3 | 54.0 | 51.6 | Jul 31 13:45 |
Markit Manufacturing PMI (JUL) | |||
53.1 | Aug 01 12:58 | ||
ISM Manufacturing PMI (JUL) | |||
51.5 | 50.9 | Aug 01 14:00 | |
PMI (JUL) | |||
50.1 | Aug 01 1:00 | ||
PMI (JUL) | |||
47.7 | 48.2 | Aug 01 1:45 | |
ADP Employment Change | |||
200K | 180K | 198K | Jul 31 12:15 |
GDP (Q2) [P] | |||
1.7% | 1.1% | 1.1% | Jul 31 12:30 |
Latest IMTs
-
محتوى بوصلة السوق من العائد الى الذهب و الناسداك
by Ashraf Laidi | Mar 20, 2024 12:42
-
BTC Needs Powell Correction بيتكوين بحاجة الى تصحيح
by Ashraf Laidi | Mar 18, 2024 17:20
-
Not once, twice, but six ستة مرات ليس صدفة
by Ashraf Laidi | Mar 13, 2024 10:07
-
Finding 88K Bitcoin كيفية الوصول الى
by Ashraf Laidi | Mar 4, 2024 12:21
-
شراء بيتكوين وصل الى عشر أضعاف الإنتاج
by Ashraf Laidi | Feb 29, 2024 9:17