Fed's Moment of Truth: Will Markets Soar or Plunge After the Call?
| Action Insight Daily Report 9-18-24 |
Fed's Moment of Truth: Will Markets Soar or Plunge After the Call? |
The much-anticipated FOMC day has finally arrived, and the financial world is eagerly waiting to see if Fed will opt for a 25bps or a more assertive 50bps rate cut. With market expectations split nearly down the middle, and likely some internal divergence within FOMC itself, the outcome is poised to trigger significant market volatility across asset classes. The key question is whether US equities will soar to new records, or face a harsh selloff afterwards. On the currency front, Dollar is trading slightly softer but remains largely range-bound against major rivals, as traders hold back ahead of Fed's announcement. But, Japanese Yen and Canadian Dollar are struggling as the weaker performers. On the flip side, Australian and New Zealand Dollars are standing out with relative strength. If today's announcement triggers risk-on sentiment, these two currencies could see further upside. European majors are mixed in the middle.... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6742; (P) 0.6755; (R1) 0.6770; More... Intraday bias in AUD/USD stays neutral for the moment. On the upside, decisive break of 0.6766 resistance should confirm that corrective pullback from 0.6823 has completed at 0.6621 already. Intraday bias will be turned to the upside to resume the rally from 0.6348 through 0.6823, and then 6870 resistance. On the downside, however, below 0.6691 will turn bias back to the downside for 38.2% retracement of 0.6348 to 0.6823 again. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Current Account (NZD) Q2 | -4.83B | -3.90B | -4.36B | -3.83B | | 23:50 | JPY | Trade Balance (JPY) Aug | -0.60T | -0.97T | -0.76T | -0.68T | | 23:50 | JPY | Machinery Orders M/M Jul | -0.10% | 0.40% | 2.10% | | 01:00 | AUD | Westpac Leading Index M/M Aug | -0.10% | -0.04% | | 06:00 | GBP | CPI M/M Aug | 0.30% | -0.20% | | 06:00 | GBP | CPI Y/Y Aug | 2.20% | 2.20% | | 06:00 | GBP | Core CPI Y/Y Aug | 3.60% | 3.30% | | 06:00 | GBP | RPI M/M Aug | 0.50% | 0.10% | | 06:00 | GBP | RPI Y/Y Aug | 3.40% | 3.60% | | 06:00 | GBP | PPI Input M/M Aug | -0.30% | -0.10% | | 06:00 | GBP | PPI Input Y/Y Aug | -0.90% | 0.40% | | 06:00 | GBP | PPI Output M/M Aug | 0.00% | 0.00% | | 06:00 | GBP | PPI Output Y/Y Aug | 0.50% | 0.80% | | 06:00 | GBP | PPI Core Output M/M Aug | 0.00% | | 06:00 | GBP | PPI Core Output Y/Y Aug | 1.00% | | 09:00 | EUR | Eurozone CPI Y/Y Aug F | 2.80% | 2.80% | | 09:00 | EUR | Eurozone CPI Core Y/Y Aug F | 2.20% | 2.20% | | 12:30 | USD | Housing Starts Aug | 1.32M | 1.24M | | 12:30 | USD | Building Permits Aug | 1.41M | 1.40M | | 14:30 | USD | Crude Oil Inventories | -0.2M | 0.8M | | 17:30 | CAD | BoC Summary of Deliberations | | 18:00 | USD | Fed Interest Rate Decision | 5.25% | 5.50% | | 18:30 | USD | FOMC Press Conference |
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