What to Watch - Week of 26 August

Past Week

• Not a big week for data or events with markets firmly focused on Jackson Hole and US Fed Chair Powell’s speech which is on tonight
• In Australia the RBA Minutes for August contained little new information. Governor Bullock’s push back on market pricing was repeated
• Importantly, the RBA Board is not being overly dogmatic in their guidance. The Minutes also noted: “members were alert to the possibility that labour demand could soften, perhaps quite rapidly”

Week ahead

• A lot of data in Australia, but none are likely to leave us any wiser in terms of the trajectory for the economy or rates. Monthly CPI Indicator (Wednesday) is for the first month of the quarter and is weighted to goods and gives little insight into services. We pencil in 3.4% y/y
• Australian pre-GDP partials of Construction Work Done (Wednesday) and Capex (Thursday), as well as July Retail Sales (Friday) will be looked at to glean the impacts of the recent tax cuts. Note CloudStrike outage hit in July
• US events are Durables (Tuesday), NVIDIA earnings (Wednesday), Jobless Claims (Thursday), and PCE (Friday). Jobless Claims and PCE spending the pick of the bunch given uncertainty on the activity side
• In Europe, the preliminary CPIs are on Friday, with the usual country data for Germany/Spain/Belgium out earlier on Thursday. No consensus is available at the time of publication
• In Asia, China has the 1yr Medium Term Lending Facility (Monday) with no change expected. Industrial Profits (Tuesday) are also out, but markets are likely to be more focused on the Official PMIs that are due out on the following Saturday (31 August). Japan has the Tokyo CPI on Friday.
• Finally in NZ, there is the ANZ Business Survey (Thursday) and Building Permits (Friday). Neither of these have consensus estimates.

View the full report here

Chart 1: NVIDIA reports on Wednesdayand will be closely watched

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