Today is expected to be an average volatility day. High volatility is observed only on the oil market, due to the aggravation of the situation in the Middle East. After the attack on the largest oil refinery in Saudi Arabia, it paused its work. It is expected that oil supplies from Saudi Arabia will be reduced by 5 million barrels per day, and this is several times more than provided for under the OPEC oil reduction agreement. Meanwhile, the situation is far from over. Investors fear military clashes with Iran and other parties to the conflict. Today we also learned about the detention of a tanker in the Gulf of Hormuz by the military forces of Iran. In any case, the reduction in oil supplies itself leads to a rise in the price of oil, which this week exceeded $60 per barrel of oil CL/WTI and is unlikely to decrease soon.
At the beginning of the day, the minutes of the RBA meeting were published, which confirmed the RBA's plans to consider a further reduction of the rate. Therefore, the AUD is under pressure today, although the housing price index in Australia fell less than expected in Q2 and this indicates an improvement in the construction sector in Australia.
From the EU, investors expected the publication of the ZEW index of economic sentiment in Germany and the eurozone. The markets anticipated an improvement in economic sentiment compared to August, and these expectations were even exceeded because the index in September was -22.5 points in Germany, as well as in the eurozone.
In the afternoon, data on sales in the manufacturing sector of Canada is expected. We are also awaiting the price index from Global Dairy Trade, important for investors trading with the NZD, and traditionally at the end of the day - the publication of data on weekly oil reserves in the United States.
