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.
If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com
Key Data Being Released Today
Japan:
Tokyo Core CPI (YoY) (Jul)
Retail Sales (YoY) (Jun)
Industrial Production (MoM) (Jun)
Australia:
PPI (QoQ) (Q2)
Eurozone:
CPI (YoY) (Jul)
GDP (YoY)
United States:
Core PCE Price Index (MoM) (Jun)
Employment Cost Index (QoQ) (Q2)
Personal Spending (MoM) (Jun)
Chicago PMI (Jul)
Michigan Consumer Sentiment (Jul)
Macro Report
Overnight saw markets meander a rather directionless path. The US dollar seemed to take its lead from weak European data, which stoked further fears of recession. Various European Commission confidence indicators were all very soft. Economic Sentiment down from 103.5 in June to 99.0 in July. Industrial confidence (3.5 from 7.0) and Services sentiment (10.7 from 14.1) both weaker than expected; and while consumer confidence was unchanged, it was still at the lowest level for over two decades.
Also of note overnight, the US published second quarter Gross Domestic Product with a reading of -0.9% US Q2 GDP headline (against a +0.4% consensus estimate). Different US authorities diminished the relevance of the negative figure. Federal Reserve chief Jerome Powell anticipated it on Wednesday, saying that a disappointing GDP figure should be taken with a pinch of salt. US Treasury Secretary Janet Yellen said on Thursday that the Q2 contraction demonstrates the economy’s move to more sustainable growth. Finally, President Joe Biden noted that Chair Powell and several other high-level banking executives claim that the US is not in a recession.
In other US economic data, Initial jobless claims for unemployment benefits fell from 261,000 to 256,000 in the past week (survey: 253,000). The Kansas City Federal Reserve manufacturing activity rose from +12 to +13 in July (survey: +4).
In Europe, German CPI, printed a higher than expected 8.5%, up from 8.2% in June and 8.1% expected.
Over the weekend will see the release of China’s July PMI numbers.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6989 | 0.06 |
| AUD/JPY | 93.93 | 0.19 |
| AUD/CNH | 4.7141 | 0.11 |
| DXY | 106.206 | -0.24 |
| Rates | Yield (%) | Change |
| US 10 Year | 2.671 | -.0.09 |
| Aus 10 year | 3.107 | 0.003 |
| Equities | Level | Change (%) |
| S&P 500 | 4072 | 1.21 |
| NASDAQ | 12163 | 1.08 |
| ASX 200 | 6890 | 0.97 |
| Commodities | Level | Change (%) |
| Iron Ore | 117.7 | 4.7 |
| Gold | 1755.88 | 1.3 |
| Brent Crude oil | 107.84 | 1.1 |