AUDUSD Day’s Range: 0.74105 – 0.74847
The June job report in Australia showed growth in the job market, however, investors weigh the new strict lockdown in NSW and VIC more than the positive job reports. New restrictions were in place in Melbourne due to the increasing number of delta-variant cases. Lockdown in Sydney was extended by another two weeks.
U.S. stocks ended lower on Thursday after the Federal Reserve’s chief said recent inflation was uncomfortably above the Fed’s target level. The Fed is less confident with the economic outlook than earlier in the year. The S&P 500 closed down 0.3% and the Nasdaq composite fell 0.7%, while the Dow Jones Industrial Average finished 0.2% higher.
China’s economy grew slower than expected in the second quarter due to the higher material costs and new COVID-19 outbreaks. GDP expanded 7.9% in April to June quarter, which is significantly lower than the growth of 18.3% in January to March period.
Data:
- AU June MI Inflation Expectations : 3.7% v. 4.4% prev.
- AU June Employment Change & Unemployment Rate : 29.1K & 4.9% v. 19.7K & 5.1% exp.
- CN Q2 GDP : 7.9% v. 8.0% exp.
- CN June Fixed Asset Investment & Industrial Production : 12.6% & 8.3% v. 12.1% & 7.8% exp.
- CN June Retail Sales & Unemployment Rate : 12.1% & 5.0% v. 10.9% & 5.0% exp.
- UK June Claimant Count Change & Unemployment Rate : -114.8K & 4.8% v. -32.5K & 4.7% exp.
- US July Philly Fed Manufacturing Index : 21.9 v. 28.1 exp.
- US Unemployment Claims : 360K v. 350K exp.
US June Industrial Production : 0.4% v. 0.6% exp.
Upcoming data:
- NZ Q2 CPI : 0.7% exp.
- JP BOJ Outlook Report and Rate Decision : -0.10% exp. (no change)
- US June Core Retail Sales & H/line Retail Sales : 0.4% & -0.4% exp.
- US July Prelim UoM Consumer Sentiment : 86.5 exp.
Major moves in the market
Stocks
- The S&P 500 fell 0.3%.
- The Nasdaq 100 fell 0.7%
- Nikkei 225 futures retreated 0.7%
- S&P/ASX 200 futures were little changed
- Hang Seng futures declined 0.5%
Currencies
- The Bloomberg Dollar Spot Index rose 0.2%
- The euro was at $1.1812
- The Japanese yen was at 109.84 per dollar
- The offshore yuan was at 6.4622 per dollar
Bonds
- The yield on 10-year Treasuries declined five basis points to 1.30%
Commodities
- West Texas Intermediate crude was at $71.49 a barrel after falling 2%
- Gold was at $1,829.42 an ounce
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