– Asian stocks and currencies gained
– NZ inflation surprised weak
– Likely modest improvement in German Zew
What to watch for today
USD: No strong signal. We expect relatively little directional impulse from today’s US September data. Industrial production likely advanced at a 0.2%mom rate after the 1.2% drop in August, but this will largely reflect a rebound in mining and utilities after the weather-related disruption in August. Manufacturing will likely remain fairly weak. Meanwhile, the CPI report should show a strong 0.5%mom rise due to gasoline, which would result in the strongest back-to-back months for headline CPI in four years. However, core prices will likely rise a tamer 0.2%. The TIC portfolio flow report for August will also be released, along with the NAHB housing market index for October.
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