Data:
Wednesday:
- USD JOLTS Job Openings: exp. 10.95M vs. 10.44M
- USD FOMC Member Clarida & Bostic Speaks
- USD CPI m/m: exp. 0.3%
- USD Core CPI m/m: 0.2%
- CNY Prelim ANZ Business Confidence: prev. -7.2
- CNY Trade Balance: exp. 185B
AUDUSD Day’s range: 0.73355 – 0.73842
We got some important U.S. data coming up today, with U.S. CPI releasing in the evening. U.S. JOLTS job opening fell to 10.44M during the month, missing the market expectation of 10.95M. A record of 4.3 million workers quit their jobs in August, led by retail and food industries.
AUDUSD rallied on the back of the Australian economy reopening and our high vaccination levels, touching a fresh high at 0.73842 before coming back to the 0.73500 line. Investors are now setting their eyes back on inflation expectations, a survey released by the New York Federal Reserve showed median expectation for inflation rise to 5.3%, the highest level since 2013. Policymakers from the Fed said that the central bank has kept pace with its plan to reduce its bond-buying program and strengthen the expectation of the Fed withdrawing the stimulus plan as soon as next month. Several Fed members suggested that they believe the tapering will start soon and is likely to conclude in the middle of 2022. EURUSD also continued to drop as the lagging tapering of ECB puts downside pressure on the EUR.
The persistent supply chain shortage and inflation pressure are impacting the growth of the global economy, additionally, the IMF cut its growth forecast from 7% to 6% for the U.S. and trimmed 0.1 points for China’s 2021 growth forecast to 8.0%.
If you want to discuss how a how we can help your business protect itself from further declines in the AUD/USD, please get in contact with your account manager or email us at sales@cafx.com
AUDUSD Daily Chart:
Major moves in the market:
Stocks
- The S&P 500 fell 0.24% ,closed at 4350.65
- The Nasdaq 100 fell 0.37%, closed at 14599.75
- The Dow Jones Industrial Average fell 0.34%, closed at 34378.34
- The S&P/ASX 200 dropped 0.26%, closed at 7280.70
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro fell 0.2% to $1.1531
- The British pound was little changed at $1.3592
- The Japanese yen fell 0.3% to 113.63 per dollar
Bonds
- The yield on 10-year Treasuries declined five basis points to 1.57%
- Germany’s 10-year yield advanced three basis points to -0.09%
- Britain’s 10-year yield declined four basis points to 1.15%
Commodities
- Brent crude oil was at USD/Bbl 80.51
- Gold was at USD/OZ 1760.51
Iron ore was at USD/T 126.42