Welcome to the Extreme Investor Network, where we provide you with exclusive insights and expert analysis on the stock market, trading, and all things related to Wall Street. Today, we are diving into the latest updates on the Australian economy and US economic calendar, offering you a unique perspective that you won’t find anywhere else.
When it comes to investing, it’s crucial to consider all subcomponents that can impact the market, such as employment and prices. The services sector plays a significant role in overall inflation, and trends in job creation and input prices can influence consumer spending, potentially fueling inflation. Additionally, a higher-for-longer RBA rate path could affect borrowing costs, disposable income, and overall spending in Australia.
Looking at the AUD/USD pair, better-than-expected Services PMI numbers could drive the pair toward $0.70. On the flip side, an unexpected decrease in the Services PMI could lead to speculation of a Q4 RBA rate cut, potentially pushing the AUD/USD below $0.67500.
Expert views on the Australian economy shed light on the current situation. Judo Bank Economist Matthew De Pasquale highlighted the ongoing pressure on input prices, suggesting that inflation pressures in domestic services may not ease in the near future.
Shifting our focus to the US economic calendar, US private sector PMIs are set to be released, with the US Services PMI holding significant importance as it accounts for nearly 80% of the US economy. Economists anticipate a modest decrease in the S&P Global Services PMI for September, which could impact expectations of potential Fed rate cuts in Q4 2024.
Stay tuned to Extreme Investor Network for more exclusive insights and expert analysis on the latest market trends and economic updates. Make informed decisions and stay ahead of the curve with our unparalleled content.