– China new loans stronger than expected in August
– Australia’s NAB business confidence index fell in August
– Canadian housing data likely to be weak
What to watch for today
CAD: Focus on housing. This week’s housing starts data are likely to provide evidence of an ongoing correction in the sector. We expect the headline to fall from 208.5K to a nine-month low of 195K. A reading in line with our expectations would likely reinforce our expectations that the Bank of Canada will not act on its hawkish conditional guidance, rehashed last week. We are neutral on USDCAD at current levels, and have revised our forecast to 0.99 in three and twelve months.
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