Last week was headlined by the US GDP growth, which fell sharply in Q3 as consumer spending slows.

The US GDP only grew by 2% in the September quarter from the same period a year ago. It also marked a sharp slowdown from Q2, when GDP growth was 6.7%.

Despite the disappointing print, the US weekly jobless claims hit a new pandemic-era low at 281,000 filings vs 291,000 the prior week.

US Fed Chairman Jerome Powell said the central bank was monitoring price pressures, and would adapt its policies accordingly.

“Global supply-chain constraints and shortages that have led to elevated inflation are likely to last longer than previously expected, likely well into next year,” Powell said.

In Australia, CPI data on Wednesday confirmed that inflation has climbed as a result of rising fuel and housing prices.

The CPI release showed that Australian’s Q3 inflation rose by 0.8% q/q and 3% y/y. Core inflation jumped to 2.1%, topping forecasts of 1.8% and pushing above the bottom of the RBA target range.

The Australian bond market is pricing in a rate rise in the middle of next year, with some analysts even predicitng the RBA could increase its cash rate to 1% by end of 2022.

The central bank has refused to defend its cash rate target, leaving the bond market to its own devices by declining to buy April 2024 treasury bonds.

As a result, the yield on the April 2024 Australian government bonds has spiked to nearly 0.6%, almost six times the RBA target.



Economic calendar for this week


The focus this week will be on the RBA policy meeting held on Tuesday.

National home values for October.
ANZ job advertisements for October. The last data was -2.8%.

Reserve Bank Board meeting.
Official statement by RBA. It would be interesting to see whether or not the RBA will stick to its 0.1% cash target all the way to 2024 given that inflation is higher.

Building approvals for September.
New vehicle sales for October

International trade balance for September. It was a surplus of $15bn, but the consensus now is only a $12bn surplus.
Retail trade for September. It was up by 0.8% in August, but the market expects that to drop by 4.5% in September.

RBA statement on monetary policy.


International calendar

US (US time)

The headline for the week will be the US Fed meeting on Tuesday and rates decision on Wednesday. Decisions made by the US Fed this week could be the blueprint for other central banks around the world.

US construction spending for September.
US new vehicle sales for October.

US Federal Reserve meeting.

US private sector payrolls.
US Fed interest rates decision. Will Fed increase its cash rate from the current 0.25%?
FOMC press conference.

US international trade.

US non-farm payrolls.

Europe (European time)

The headline for the week will be dominated by Wednesday’s unemployment data.

Business climate survey for October.
Unemployment rate for September.

Retail sales for September.


ASX IPO calendar for this week

Judo Capital (ASX:JDO). The company provides financial services, principally to small and medium-sized enterprises. It raised $653m at $2.10 a share in the IPO.
Step One Clothing (ASX:STP). This is a direct-to-consumer online retailer for men’s underwear. Step One offers an exclusive range of organically grown, sustainable and ethical underwear that suit a range of body types. It raised $81.3m at $1.53 a share in the IPO.

Aurum Resources (ASX:AUE). Mineral explorer that raised $5m at 20c a share.
RemSense Technologies (ASX:REM). Virtual plant technology and engineering services company that raised $5m at 20c.

Austral Resources (ASX:AR1). A mineral explorer that raised $30m at 20c a share.
C29 Metals (ASX:C29). A mineral explorer with a primary focus on developer copper, gold and base metal assets throughout Australia. The company raised $5m at 20c a share.

Hamelin Gold (ASX:HMG). A mineral explorer that raised $12m at 20c a share.

Green Technology Metals (ASX:GT1). A mineral explorer that raised $24m at 25c a share.