Welcome to our daily market update where we help keep you informed on the latest happenings in the world of FX and show you what this means for the Mighty Aussie Dollar.
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Key Data Being Released Today
| Japan – | Tokyo Core CPI (YoY) (Aug) | ||||
| CPI Tokyo Ex Food and Energy (MoM) (Aug) | |||||
| United States – | Core PCE Price Index (MoM) (Jul) | ||||
| Goods Trade Balance (Jul) | |||||
| PCE Price index (YoY) (Jul) | |||||
| Personal Spending (MoM) (Jul) | |||||
| Retail Inventories Ex Auto (Jul) | |||||
Macro Report
Equities rallied while US bond yields fell as traders anticipate Powell’s Jackson Hole speech for further clarification on the Fed’s policy path to fight inflationary concerns.
US 10-year yields slipped to 3.03%. The S&P 500 climbed 1.41% to 4,199.12, and Dow Jones jumped 0.98% or 322.55 points, to 33,291.78, with gains boosted in the final hour of trading. The Nasdaq Composite also advanced 1.67% or 207.74 points to 12,639.27.
The Aussie dollar is trading at 0.69603 at the time of writing, following the rally during yesterday’s trading session. Although the AUD/USD posted the largest daily jump in a fortnight, the currency pair hit a roadblock at the 0.70 level.
Given the Aussie dollar is highly levered to China, the rally was largely owed to China’s stimulus. Optimism and improved market sentiment led by China’s 19-point policy package and the government declaring economic stimulus measures worth CNY 1 trillion (USD 146 billion) to tackle the country’s growth concerns fuelled by the pandemic and housing market crisis. However, China’s boost to risk assets such as the AUD is likely to fade and may be cut short, given the threat of Jackson Hole.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6961 | -0.29 |
| AUD/JPY | 95.1310 | -0.17 |
| AUD/CNH | 4.7663 | -0.26 |
| DXY | 108.5320 | 0.06 |
| Rates | Yield (%) | Change |
| US 10 Year | 3.03 | -0.020 |
| Aus 10 Year | 3.67 | 0.048 |
| Equities | Level | Change (%) |
| S&P 500 | 4,199.12 | 1.41 |
| NASDAQ | 12,639.27 | 1.67 |
| ASX 200 | 7,048.13 | 0.71 |
| Commodities | Level | Change (%) |
| Iron Ore | 105.55 | -4.14 |
| Gold | 1,770.80 | -0.03 |
| Brent Crude oil | 99.34 | -1.86 |