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
| Australia – | Home Loans (MoM) | |||
| Private New Capital Expenditure (QoQ) (Q2) | ||||
| China – | Caixin Manufacturing PMI (Aug) | |||
| United Kingdom – | Nationwide HPI (YoY) (Aug) | |||
| Manufacturing PMI (Aug) | ||||
| Eurozone – | Manufacturing PMI (Aug) | |||
| Unemployment Rate (Jul) | ||||
| United States – | Initial Jobless Claims | |||
| Manufacturing PMI (Aug) | ||||
Macro Report
Markets were somewhat weaker overnight to finish the month, the USD was the standout, closing what was a very strong August for the greenback.
Equity markets continued their recent poor run, the European market closing 1.25% lower, the S&P and Nasdaq also losing ground, those indices declining between 4.2%– 5.5% over the month of August.
The Eurozone CPI was the major data release, beating expectations and printing at 9.1%, a new record high. In US economic data, the ADP report showed a 132,000 lift in private sector payrolls in August after posting a 268,000 rise in July. Mortgage applications fell 3.7% in the past week after falling 1.2% in the prior week. The Chicago purchasing managers index rose from 52.1 to 52.2.
Major currencies were mixed against the US dollar in European and US trade. The Aussie dollar fell from highs near US69.05 cents to lows near US68.40 cents and was near session lows at the US close. The Euro rose from lows near US$0.9970 to rise above the parity level, as markets begin in to factor in potential 75 basis point rate rise.
Ahead today, business investment data is released with purchasing manager indexes (PMIs), home prices and lending indicators such as home loans. In the US, Challenger job cuts is released with the ISM and S&P Global PMIs, unit labour costs, productivity, construction spending and weekly data on claims for unemployment insurance.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6836 | -0.04 |
| AUD/JPY | 95.13 | 0.11 |
| AUD/CNH | 4.7212 | -0.03 |
| DXY | 108.69 | -0.07 |
| Rates | Yield (%) | Change |
| US 10 Year | 3.1757 | 0.07 |
| Aus 10 year | 3.66 | 0.04 |
| Equities | Level | Change (%) |
| S&P 500 | 3955 | -0.78 |
| NASDAQ | 11816 | -0.56 |
| ASX 200 | 6987 | -0.16 |
| Commodities | Level | Change (%) |
| Iron Ore | 100.82 | 2.51 |
| Gold | 1719.7 | -0.20 |
| Brent Crude oil | 96.53 | -2.80 |