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 – | Services PMI (Jul) | ||||
| Australia – | Retail Sales (MoM) | ||||
| China – | Caixin Services PMI (Jul) | ||||
| Eurozone – | Services PMI (Jul) | ||||
| Retail Sales (MoM) (Jun) | |||||
| United States – | S&P Global Composite PMI (Jul) | ||||
| Services PMI (Jul) | |||||
Macro Report
A sudden turnaround in risk sentiment has boosted the US dollar against its peers. The US dollar momentum is given by Treasuries rebound, with the 10-year yield currently at 2.75% from the previous month’s low of 2.54%.
Equities are down in the US, with the S&P 500 dropping by 0.67% to 4091.19 and the Nasdaq Composite Index falling 16% to 12348.76.
For the Australian dollar, it took a tumble following the RBA’s 50 basis point rate hike as it lifts its cash rate target to 1.85%. This perceived step back from aggressive tightening has markets believing that the RBA may not be as hawkish as previously believed. RBA governor Philip Lowe’s statement also suggested there could be a potential pause in consecutive rate rises as the RBA closely monitors the release of economic data.
Scheduled for release today is Australia’s real Q2 retail sales, which could provide some momentum to the AUD/USD currency pair. A month-over-month print of 0.5% is predicted versus a previous reading of 0.9%. If the release of retail sales data is better than expected and indicates strength in consumer spending, it could give the RBA room to continue its aggressive rate hikes.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6912 | -0.12 |
| AUD/JPY | 92.0220 | -0.14 |
| AUD/CNH | 4.6825 | -1.67 |
| DXY | 106.2410 | 0.75 |
| Rates | Yield (%) | Change |
| US 10 Year | 2.75 | 0.181 |
| Aus 10 year | 3.11 | 0.133 |
| Equities | Level | Change (%) |
| S&P 500 | 4091.19 | -0.67 |
| NASDAQ | 12349.76 | -0.16 |
| ASX 200 | 6998.05 | 0.07 |
| Commodities | Level | Change (%) |
| Iron Ore | 113.36 | -0.87 |
| Gold | 1776.3 | -0.75 |
| Brent Crude oil | 100.54 | 0.51 |