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10/11/2021 Wednesday



  • EUR ECB President Lagarde Speaks
  • USD PPI Oct: exp. 0.6% vs. 0.6%
  • USD Core PPI Oct: exp. 0.5% vs. 0.4%
  • GBP BOE Gov Bailey Speaks
  • CAD BOC Gov Macklem Speaks
  • CNY CPI y/y: exp. 1.4%
  • CNY PPI y/y; exp. 12.2%


AUDUSD Day’s Range: 0.73607 – 0.74318


The longest rally since 2017 of the U.S. stocks ended with major indexes dropping from their all-time high. The 10-year yield dropped to the lowest level in seven weeks, putting downside pressure on the stock market. The S&P 500 fell for the first time in nine sessions, led by a drop in financial shares. Global equities have been at a near all-time high as investors weigh the strong earnings from corporations, easing travel restrictions and the expectation of a tighter monetary policy. On Tuesday, the Fed Chair Powell said that they will look at a wide range of indicators to assess whether the economy is to reach full employment, instead of looking merely at the improvement in the headline of nonfarm payroll numbers. Fed members argue for policy patient and suggest that it will be mid-2022 before that is clarity on the true state of the labor market and the inflation outlook.


President Joe Biden interviewed Fed Governor Lael Brainard as a potential candidate to replace current Fed Chairmen Powell whose current term expires in February 2022. Investors were worried that Brainard would be negative for the USD and USD whipsawed around with the treasuries and the news. The Australian NAB business confidence rebounded as the vaccinations level increased and the economy reopens. AUDUSD was traded steadily throughout the session before depreciating on a drop-in commodity selloff and a weakening of the CNY in the afternoon.


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AUDUSD Daily Chart:


Major moves in the market:


  • The S&P 500 fell 0.35% , closed at 4685.25
  • The Nasdaq 100 dropped 0.80%, closed at 16197.25
  • The Dow Jones Industrial Average fell 0.31%, closed at 36319.98
  • S&P/ASX 200 dropped 0.24%, closed at 7434.20



  • The Bloomberg Dollar Spot Index was little changed
  • The euro was little changed at $1.1596
  • The British pound was little changed at $1.3561
  • The Japanese yen rose 0.3% to 112.87 per dollar



  • The yield on 10-year Treasuries declined five basis points to 1.44%
  • Germany’s 10-year yield declined five basis points to -0.30%
  • Britain’s 10-year yield declined three basis points to 0.82%



  • Brent crude oil was at USD/Bbl 84.53
  • Gold was at USD/OZ 1831.69
  • Iron ore was at USD/T 91.98