Key Data Being Released Today.
Thursday
- Bank Holiday in China
- German Industrial Production Exp – -0.4%
- French Trade balance Exp – -6.8B
- ECB Monetary Policy Meeting Accounts
- US Unemployment Claims.
The Aussie Dollar
There isn’t much Australian Tier 1 fundamental data being released today, so once again we look to what is happening with the USD to gain some insights into what the Dollar is doing.
Having struggled to find breathing room above the 0.7300, the Aussie Dollar witnessed heavy selling on Wednesday and snapped four consecutive day winning streak. A combination of factors pushed the US dollar back closer to one-year tops and exerted downward pressure on the USD.
The market almost seems convinced that the Fed will be rolling back its massive pandemic-era stimulus as soon as November. The markets might have also started pricing in the prospects for a rate hike in 2022 amid worries that the recent surge in crude oil/energy prices could continue to stoke inflation.
A combination of factors have pushed the yield on the benchmark 10-year US government bond to the highest level since June. This, along with a risk-off sentiment in the global markets provides an additional boost to the traditional safe-haven USD which has a negative impact on the perceived riskier Aussie Dollar.
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AUD/USD Daily Chart
Major Global Markets
- Stocks
- S&P 500 closed at 4363
- NASDAQ closed at 14780
- ASX 200 closed at 7248
- Currencies
- AUD/JPY – At the time of writing this report trades at 81.06
- AUD/CNH – At the time of writing this report trades at 4.6929
- DXY (US Dollar Index) – At the time of writing this report trades 94.232
- AUD/EUR – At the time of writing this report trades 0.6296
- Bonds
- US 10-year Bonds have continued to rise, currently at 1.528
- Commodities
- Iron Ore – Trading at USD/T 117.7
- Gold – trading at USD/OZ 1762
- Brent Crude Oil – Trading at USD/Bbl 80.82