Reserve Bank Of New Zealand Raised Rates By 50bp Yet Again | In Anticipation Of The Next OPEC Meeting
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Today there will be a lot of data from all over the world. The most important decisions and reports may affect the situation of the currency or commodities market.
Retail Sales (MoM)
Australia has published a retail sales report MoM. The reading has reached the expected level of 0.6%. The previous reading was at 1.3%, which means that it fell this time, but it was an expected drop.
RBNZ Interest Rate Decision
Today at 3:00 CET another decision on interest rates was made. Reserve Bank of New Zealand (RBNZ) raised rates from 3.0% to 3.5%. In 2022. The market expected such a decision. The RBNZ raised rates by 50bp each time.
Source: investing.com
UK Purchasing Managers' Index reports
At 10:30 CET, the UK will publish its Purchasing Managers' Index (PMI) reports.
The first one will concern the activity level of purchasing managers in the both sectors. It is expected to drop from 49.6 to 48.4 in September. This year it will be the second time that U.K. Composite Purchasing Managers' Index is below 50. This will mean another contraction in this sector.
Another report will be on the activity level of purchasing managers in the services sector. It is expected to drop below 50 for the first time this year and reach 49.2. This means that the compression of this sector will begin as well.
OPEC meeting
The monthly OPEC meeting will take place at 12:00 CET. Meetings are attended by representatives from 13 oil-rich nations. They discuss a range of topics regarding energy markets and agree on how much oil they will produce.
What kind of decisions can we expect?
OPEC aims to change the price of oil by adjusting the volume of supply. If its members want to raise the price of oil, they can lower their production quotas to limit supply. In early September, OPEC surprised the markets and announced a slight reduction in oil production. We can expect that also this time the decision will be made to reduce production by OPEC+.
The group may announce that it is expanding a general cooperation agreement between OPEC, Russia and other producing countries, which expires in December.
Crude Oil Inventories
At 16:30 U.S. will published report about the weekly change in the number of barrels of commercial crude oil held by US firms. This number is expected to increase from -0.215M to 2.052M which means it implies weaker demand and is bearish for crude prices.
Source: investing.com
ADP Nonfarm Employment Change
At 14:15 CET, the U.S. report will appear. ADP Nonfarm Employment Change. It is a measure of the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 U.S. business clients. And this time it is expected to reach 200K. This would be a significant increase from 132K. Such a reading would be positive for the US currency (USD).
ISM Non-Manufacturing PMI
The Institute of Supply Management (ISM) will publish a report on Business, a composite index is calculated as an indicator of the overall economic condition for the non-manufacturing sector. The reading is expected to be at 56.0. It will be lower than its previous reading of 56.9.
Despite expectations of a decline, the situation in this sector is positive, as it is above 50 for the entire period this year.
Summary
- 2:30 CET Retail Sales (MoM)
- 3:30 CET RBNZ Interest Rate Decision
- 10:30 CET UK Composite PMI (Sep)
- 10:30 CET UK Services PMI (Sep)
- 11:00 CET German Buba Beermann Speaks
- 12:00 CET OPEC Meeting
- 14:15 CET ADP Nonfarm Employment Change (Sep)
- 16:00 CET ISM Non-Manufacturing PMI (Sep)
- 16:30 CET Crude Oil Inventories
Source: https://www.investing.com/economic-calendar/
