Latest data from the Mortgage Bankers Association for the week ending 8 October 2021
– -6.9%
A modest increase in mortgage activity despite higher rates once again, with the jump in purchases offsetting the decline in refinancing applications. That said, with higher rates and high prices, it will pose a challenge to demand conditions in the

Remarks by China’s state planner
Adding that local governments will be strictly prohibited from shutting down coal mines without authorisation. Meanwhile, an energy administration official is out at the same time stating that China’s daily coal output has reached its highest level since February.

Latest data released by Eurostat – 13 October 2021
Essentially, it seems like supply and capacity constraints are weighing on factory output so expect more sluggishness to follow in the months ahead.

More JPY weakness despite risk off start to session
Other markets
The wall of worry spoken about in yesterday’s wrap returned overnight. The sheer list of concerns is telling in itself: Evergrande default anxiety, supply chain complexities and delays, inflation fears with even Japan bucking its deflationary trend, and energy prices precariously high all have traders angsty. 

Gut vs analytical 
There are basically two types of thinking that we do: 
The automatic is your gut feel. The longer you have traded the more you should trust your gut feel. The analytical part of your mind is that part of you that slows down to think. The part of you that needs to sit down

Dollar smile theory
It is helpful. 
Do you ever get confused when you are trading the USD? It is understandable. The USD has different drivers at different times.
 

Be plain 
One of the often overlooked aspects of trading is that not every single instrument is equal. Some are more expensive than others, some are more volatile than others. 

Temporary shutdown in communications.

Iron Ore
Iron Ore prices  (light orange)have moved sharply higher helping lift the AUD today as well as positive COVID news. 
If Iron Ore prices keep rising higher then expect that to further support the AUD. Around 20% of all Australia’s exports are Iron Ore. Coal is the next highest export and those prices are already well

Risk leans on, but risk remains
Other markets
– FTSE +0.32% 
– Dax -0.47%
– CAC -0.34%
– Bitcoin +2.77%
– Gold -0.14%
– US oil +2.95%
 Oil markets kept pushing higher on the three main drivers of low inventories, rising demand, and skilled OPEC market communication.