GDP

The velocity of money is calculated by dividing a nation’s GDP by its money supply. The level of velocity indicates how quickly money cycles through households and businesses in an economy.

With the BoJ and FOMC meetings, and key US data including GDP, Core PCE Price Index and nonfarm payrolls report all to come, the USD/JPY outlook could change dramatically and perhaps multiple times over the next several days.

The government’s recent 2023 growth target of ‘around’ 5% seems to be on track according to the NBS, which helped commodity FX and indices rise during the Asian session.

The Canadian GDP was much worse than expected, however the GDP Price Deflator was also weak.

If we see continued strength in US data, this will further boost the hawkish Fed bets

Although Durable Goods was stronger than expected, there is little to take from the other data points, as it was from so long ago.

As well as GDP, there were positive surprises in Jobless claims and durable goods orders

Today’s US data did little to help traders change their minds regarding the possibility of a 75bps hike at next week’s FOMC meeting.

With some calm restored to Wall Street overnight, attention today tuned to the release of Q2 NZ GDP and the Australian August labour force report for August.

The ASX200 trades 100 points lower at 6727 at 3.05pm

The higher revision to the Price Index continues to shed light on the fact that Fed underestimated inflation over the course of the last year.

The textbook definition of a recession is 2 quarters of negative growth. However, many economists don’t abide by that rule.

A quiet start to the new trading week as U.S stock markets closed mixed ahead of this week's FOMC and Q2 GDP data and earnings reports from U.S Mega Tech companies.

As the release of the final partials yesterday warned, Australian Q1 2022 Australian GDP has beaten expectations, rising by a solid 0.8% QoQ and 3.3% YoY, despite the impact of Omicron and the devastating rains and floods that hit the East Coast.

Just one week before the highly anticipated June RBA Board meeting, Australian Q1 2022 GDP is set to drop this Wednesday.

GBP/USD falls as stagflation fears rise. CAC rallies after the first round of the French elections.