US Senate voted in favour of approving tax reform. US$ has strengthened as US tax cuts raise optimism. Current US Fed member Jerome Powell (dovish Republican) with similar policy preferences to current Fed Chair Janet Yellen is favoured as President Trump’s pick for the next Fed Chair. Markets liked this too as it is likely to maintain the steady & consistent rise in equity markets. In Australia, the key event is tomorrow’s Q3 CPI data. The headline Q3 forecast is 0.7% and 1.9%pa (well below the RBA’s target band 2%-3%). Market awaits the ECB meeting (Thu) and US Q3 GDP (Friday).
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