The Australian trade-to-GDP ratio is above 50%. An uncertain demand outlook and possible supply chain disruptions would adversely impact the Australian economy, the AUD/USD, and labor market conditions. Trade-related jobs account for 20% of the Australian labor market.
Market participants must closely monitor updates from the Middle East throughout the day. The threat of a more widespread conflict would likely intensify demand for the US dollar.
There are no Australian economic indicators to distract investors today. However, economic indicators from China and the IMF meetings will be focal points during the week.
FOMC Member Speeches in Focus
Later today, FOMC member speeches may influence sentiment toward the Fed and the interest rate outlook.
FOMC voting members Michael Barr, Lorie Logan, and Philip Jefferson are on the economic calendar to speak today. The markets will respond to FOMC member views on the US Jobs Report and the likely influence on the Fed interest rate path.
However, following the news from the Middle East, investors must also consider guidance on how the Fed will respond. FOMC members may give a range of scenarios for the markets to consider.
