Analysts at Westpac noted the forthcoming events.
Key Quotes:
“The RBA policy decision is due at 2:30pm Syd/11:30am Sing/HK. It should provide only limited distraction ahead of the running of the Melbourne Cup 30 minutes later. The cash rate is firmly on hold at 1.5% for some time, with the October Board minutes repeating that, “there was no strong case for a near-term adjustment in monetary policy.” The statement needs to acknowledge the low Q3 inflation data released between meetings but Friday’s quarterly statement is likely to produce unchanged forecasts. Indeed, today’s statement could well confirm that the key forecasts are little changed since August. We will also be looking for the language around the ongoing fall in house prices.”
“The twice-monthly dairy auction takes place in London trade, with little change expected. There will also be plenty of commentary from ECB officials.”
“In the US, we should see further confirmation of the tightness of the job market, with the Sep Job Openings and Labor Turnover Survey (JOLTS) due. The number of job vacancies has been trending firmly higher since 2009 but picked up pace this year.”
“It is Election Day in the US. Midterm elections are held every four years, at the halfway point between presidential elections. All 435 seats in the House and 35 of 100 Senate seats face re-election, along with many state governorships. Markets should be braced for a divided Congress (Republicans holding the Senate but Democrats taking control of the House) but US elections often produce surprises so global markets and AUD could be whippy around the results on Wednesday Sydney time.”
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