| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 00:30 | Japan | Services PMI | September | 54.3 | 53.3 | 53.8 |
| 01:00 | New Zealand | RBNZ Interest Rate Decision | | 5.5% | 5.5% | 5.5% |
During today's Asian trading, the US dollar rose moderately against major currencies, extending yesterday's gains as latest data pointed to a tight labor market.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.18% to 107.19. Yesterday, the index reached its highest level since November 22, 2022 (107.35) after the JOLTs job openings report showed that in August the number of vacancies - an indicator of labor demand - jumped by 690,000, to 9.610 million. The data for July was revised upward - to 8.920 million vacancies from 8.827 million. Economists had forecast 8,800 million vacancies in August. The higher-than-expected figures prompted markets to reconsider the chances of the Fed raising interest rates. According to the CME FedWatch Tool, markets see a 30.8% chance that the US Central Bank will support a 25 basis point rate hike at its November meeting, versus 27.2% the day before, and a 45.1% chance that such a move will be approved in December, versus 46.0% the day before.
The New Zealand dollar fell 0.4% against the US dollar after the Reserve Bank of New Zealand (RBNZ) again left the interest rate at 5.5%, as expected, while stating that the current rate level is constraining economic activity and reducing inflationary pressure as required. Meanwhile, the RBNZ warned that interest rates will have to remain at a high level for the foreseeable future in order to guarantee the return of consumer inflation to the target range (1%-3%) and maintain maximum sustainable employment. The RBNZ expects inflation to return to the target range by the second half of 2024.
The yen consolidated against the US dollar. Yesterday, the USD/JPY fell by 0.55% after briefly exceeding the psychologically important level of 150 yen per dollar against the background of the US labor market report. Some experts said that the sharp downward movement indicates that the Bank of Japan has intervened to keep the yen from falling further. Japanese Finance Minister Shunichi Suzuki said today that the government will take appropriate steps against excessive fluctuations in the yen. He also warned that the government “does not rule out any options,” but did not comment on whether Tokyo intervened in the exchange rate market overnight to prop up the yen.