Australia's Inflation Has Increased | The Interest Rates Decisions Ahead (Canada, Brazil)| FXMAG.COM

The first reports came from the Pacific at the start of the day. This is an instant report on inflation in Australia. In the second half of the day I am waiting for important decisions from both Americas.

Australian CPI

At the beginning of the day, we get to know the report on the change in the price of goods and services from the perspective of the consumer in AUstralia. Both the annual and quarterly CPI results are positive.

The price change from the third quarter of this year to the third quarter of last year increased by 1.2%. It was expected to rise to 7.0%, but the result turned out to be higher (7.3%). Looking at the previous periods, we can conclude that CPI YoY is in an exemplary trend.

Australia's Inflation Has Increased | The Interest Rates Decisions Ahead (Canada, Brazil) - 1

Source: investing.com

CPI QoQ maintained its previous level of 1.8% and was higher than the forecasted 1.6%, therefore this reading was considered positive.

BoC Interest Rate Decision

Today the Bank of Canada will decide on interest rates. It is expected that this time there will be a hike of 75bp. Before the pandemic, interest rates were at 1.75%. Along with the increase in the risk of the crash, the rates dropped to the level of 0.25% and this level was maintained until March this year, when the first increase by 0.25% took place. Subsequent decisions on rate hikes confirmed the current level of 3.25%.

To better understand the decisions of the Bank of Canada, traders will observe the press conference, which will take place one hour after the announcement of the new rate level.

Crude Oil Inventories

The weekly report on The Energy Information Administration's (EIA) Crude Oil Inventories will be released today. The reading is expected to be added and the number of barrels of oil held by the US Firms is expected to hit 1.029M. Such a result will mean an increase from the last level of -1.725M. If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices.

New Home Sales (Sep)

According to forecasts, the annualized number of new single-family homes that were sold during the previous month will drop from 685K to 585K. Which may mean that the August peak turned out to be a false reflection of the downtrend.

Since the beginning of the year, sales of family houses have been in a downward trend, despite several false rebounds from this trend. We can expect this trend to continue as long as interest rates continue to rise and the Fed does not ease its actions.

Australia's Inflation Has Increased | The Interest Rates Decisions Ahead (Canada, Brazil) - 2

Source: investing.com

Brazil Interest Rate Decision

Today, the largest country in South America will also decide on interest rates. The level is expected to be maintained. The last three decisions remained unchanged at 13.75% and a fourth such decision is expected.

As of August 2020, interest rates in Brazil were at 2.0%. There have been increases in rates since March 2021. In February this year, they exceeded the level of 10.75%. They grew until they hit 13.75% in August.