United States Monthly Budget Statement came in at $-166.8B, above expectations ($-404B) in August

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day’s sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of…

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UMich September consumer sentiment 47.8 vs 51.0 expected

Priorwas 51.0 Current conditions 50.9 vs 51.3 exp Expectations 45.8 vs 50.5 exp One-year inflation 4.6% vs 4.0% exp Five-year inflation 3.4% vs 3.3% exp Those inflation expectations numbers will further tilt the Fed towards hiking rates next week. I think it’s a done deal now and the market has it at 82%. This article was written by Adam…

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Economics week ahead

Next week, we expect the FOMC to raise rates by 25 bps, bringing the federal funds rate target range to 3.75%–4.00%. Consumer spending should remain resilient, with retail sales rebounding 0.7% in August. Meanwhile, elevated mortgage rates and affordability challenges are likely to keep housing starts under pressure in August. Abroad, central banks remain in focus. We expect the…

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