Fed Vice Chairman Stanley Fischer said in an interview on Tuesday that the job market is almost at full strength and the pace of interest rate increases will depend on how well the economy is doing. On Wednesday, Boston Fed President Eric Rosengren said the Fed should consider that quicker interest rate rises over time could stave off risks to the economy, while Chicago Fed President Charles Evans said he was increasingly convinced that US economic growth had slowed permanently.
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Conference Board data showed US consumer confidence rose to 101.1 in August, beating economists’ expectations for a dip to 97.0, according to a Reuters poll.
An upbeat nonfarm payrolls report on Friday would reinforce the view that a USA rate hike may be on the cards, after Fed officials sounded a hawkish note at a meeting last weekend.
An upbeat payrolls report would reinforce the view that a US interest rate hike is now likely before the end of the year, after Fed Chair Janet Yellen said on Friday the case for higher rates was strengthening. Some doubts as to whether the USA central bank will be able to move next month helped European shares gain.
Mr Wong said the ANZ Business Outlook for August, due out today, is likely to be the main piece of important data for the market but the main event this week is still non-farm payrolls data due out in the USA on Friday, which are expected to show the world’s largest economy added 180,000 jobs in August.
Upbeat U.S. data released on Tuesday helped the dollar extend gains, with a consumer confidence index rising to an 11-month high in August.
“Any signs of strength make investors worry that the Fed will accelerate their plans to raise interest rates”, said Alan Gayle, head of asset allocation at Atlanta-based RidgeWorth Investments.
Silver was up 0.3 percent at $18.67 an ounce.
MSCI’s all-country world equity index .MIWD00000PUS was last down 0.15 points, or 0.04 percent, at 417.89. Platinum rose 0.2 percent to $1,050.
The New Zealand dollar fell against a broadly stronger United States dollar as commodity prices fell, USA consumer confidence rose and Japan signalled its willingness to tackle gains in the yen. A strong greenback makes fuel purchases more expensive for countries using other currencies domestically. US gold futures fell $2.70 to $1,308.60.
U.S. Treasury yields were little changed as traders awaited the U.S.jobs data.
Markets are pricing in around one chance in four of a September rate increase, compared with one chance in five before the Jackson Hole meeting.
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Spot gold edged up 0.1 percent to $1,309.76 per ounce at 0343 GMT. Crude oil futures continued to slip after ending down for a second straight day on Tuesday, on worries of oversupply and a strong dollar.
