Market Drivers – US Session – 15 April

US stock markets were closed for Good Friday and other holidays, while Asian indexes fell. US indexes finished the trading week with declines as investors worried about persistent inflation, prospects of economic slowdown. In addition to US stock markets, bond and commodities markets were also closed Friday.

Economic Data
Friday witnessed no remarkable economic data.

Other Developments
Despite the idle session, the US Dollar Index, a measurement of the buck’s value against its peers, is up 0.69%, sitting at 100.525.

Data wise in the week, the Australian docket witnessed some mixed results, led by the disappointment in the Employment Change report. Even though it showed the creation of 17K new jobs in the economy, it was lower than the 40K estimated.

At the same time, the Unemployment Rate uptick to 4%, though in line with RBA’s target. On the positive side, NAB Business Confidence March’s survey came at 16 higher than the previous month, while Consumer Confidence for April fell to 95.7 from 96.6 in March.

Meanwhile, the US economic docket revealed that consumer inflation in March rose above the 8% threshold, at 8.5% y/y, the highest since 1981, while excluding volatile items, the so-called core, increased 6.5%, lower than the 6.7%, a signal that inflation was about to peak.

Nevertheless, on Thursday, the Producer Price Index (PPI) sent the “positive” expectations of consumer inflation over the board, showing that prices paid by producers rose by 11.2% vs. 10.6% estimations, while core PPI increased by 9.2%, higher than the 8.4%.

Now that data is in the rearview mirror, it is worth noting what the next week would bring for AUD/USD traders. The Australian docket will feature RBA Minutes and the Consumer Price Index. Across the pond, the US docket will reveal US Building Permits, Housing Starts, Existing Home Sales, and Flash PMIs.

Recession and slowdown concerns signal dark clouds ahead the US economy. China also suffers from slow economic growth and Russia is expected to suffer more under the sanctions imposed by the Western allies on the backdrop of the war in Ukraine. Yet, economists have monitored that the commercial ties between the EU and China are too hard to break despite the disagreements and different stances concerning Ukraine. Similar dark clouds do exist as traders digest the earnings reports by the biggest US Banks. Next week will bring more and more earnings and Q1 results that are worth analysis.

The European Union has started drafting its proposal for an embargo on Russian oil imports as its latest response to the war in Ukraine, the New York Times reported, citing Brussels officials and diplomats.

Also Read
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China-EU commercial ties too hard to break despite Ukraine war

Russian economy to crash as sanctions get intensified

Bitcoin Regains $40K As Sentiment Turns to Extreme Fear

EU To Draft Embargo On Russian Oil

China Suffers From Slow Economic Growth

GBP/USD to finish the week Lower Amid Stronger US Dollar’s Performance

Could US Economy Stay Strong?

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