During the trading on Tuesday, October 1, 2019, financial markets will be interested in the release of economic calendar data, the results of which usually cause changes in price movements - the economic calendar is a key tool for the fundamental analysis of news to predict the performance of the markets. Therefore, care must be taken until the actual results of those data are released to make the right trading decision. The economic news today include:
Australian Building Approvals: In Australia, the number of approved homes fell 9.7 percent month-on-month in July after the previous month's reading was revised down to a 0.8 percent decline. The month's reading came in below analysts' forecasts. This is by far the largest monthly decline in building permits in up to four months. Approvals for private non-residential and residential housing declined. Between states and territories, New South Wales and Victoria saw a decline in housing approvals, but South Australia, Tasmania, Queensland and Western Australia saw increases in approvals.
Forecast for August 2019: 2.1 percent increase.
Australian interest rate: In Australia, the Reserve Bank of Australia decided to leave interest rates unchanged at a record low of 1.0 percent during the meeting in September as widely expected by analysts. Policymakers said interest rates were likely to remain low for an extended period of time, and an effort was needed to reduce unemployment and achieve the inflation target. The MPC also noted that it will continue to monitor the effects of June and July interest rate cuts and labor market developments.
Forecasts for October 2019: rate cut to 0.75 percent.
RBA Monetary Policy Statement: The RBA uses the interest rate statement as a tool for communicating with investors regarding monetary policy. It provides the results of the members' decision on setting interest rates. In addition, it contains a commentary about the economic conditions that affected their decision. More importantly, it provides an economic outlook and provides evidence of future monetary policy decisions of the bank.
Remarks by RBA Governor Philip Lowe: RBA Governor Philip Lowe is scheduled to make brief remarks at the RBA dinner in Melbourne. The Australian dollar is often very volatile during these comments, as traders try to understand the direction of future interest rates.
Canada's GDP: The Canadian economy grew 0.2 percent in June, the same as the previous month. However, this month's reading came in above analysts' expectations of 0.1 percent. Commodity producer industry fell 0.2 percent due to a decline in the manufacturing sector. Increases in the production of durable goods such as wood products and manufactured metals were offset by declines in the manufacturing of non-durable goods such as food. On the other hand, service-producing industries rose 0.3 percent, supported by wholesale trade. In the service sector, wholesale trade grew, led by wholesale trade, machinery, equipment and supplies. Retail trade was driven by building materials, garden equipment and supplies, clothing and accessories, and general merchandise.
Outlook for July 2019: Canadian economy growth of 0.1 percent.
US ISM Manufacturing PMI: In the US, the ISM Manufacturing PMI fell to 49.1 in August from 51.2 the previous month. The monthly reading beat analysts' expectations of 51.1. The August reading indicated that the manufacturing sector contracted for the first month since January 2016. Employment and new applications fell amid concerns over the US-China trade dispute. Forecast for September 2019: 50.4 reading.
