AUDUSD Day’s Range: 0.73772 – 0.74101
The Dollar Index slipped as investors now expect the Federal Reserve would maintain its stimulus and continue to support the economy. Furthermore, investors move to riskier assets as China will still allow Chinses companies to list in the U.S. The AUDUSD rallied into the close of the day with the AUD breaking above the 0.7400 handles and reaching a high of 0.74101.
All of the main American stock indexes rallied despite the weaker than expected U.S. growth data, with S&P 500 and Dow Jones Industrial Average touching record. U.S. economy grew solidly in the second quarter of this year with the GDP level exceeding the pre-pandemic peak. According to the Commerce Department, the GDP increased at a 6.5% annualized rate last quarter, lower than the economics’ forecast of 8.5%. Consumer spending grew at an 11.8% rate in the second quarter. Furthermore, the initial claim for state unemployment benefits was reduced by 24,000 to a seasonally adjusted 400,000 for the week ended July 24. Pending Home Sales Index in the U.S. dropped 1.9% last month.
Data:
- NZ July ANZ Business Confidence : -3.8 v. -0.6 prev.
- AU Q2 Import Prices : 1.9% v. 1.1% exp.
- US Q2 Advance GDP : 6.5% v. 8.5% exp.
- US Q2 Advance GDP Price Index : 6.0% v. 5.4% exp.
- US Weekly Unemployment Claims : 400K v. 382K exp.
- US June Pending Home Sales : -1.9% v. 0.1% exp.
Major moves in the market:
Stocks
- Futures on the S&P 500 rose 0.2% as of 4:40 p.m. New York time
- Futures on the Dow Jones Industrial Average rose 0.4%
- The MSCI World index rose 0.8%
Currencies
- The Bloomberg Dollar Spot Index fell 0.4%
- The euro rose 0.3% to $1.1886
- The British pound rose 0.4% to $1.3963
- The Japanese yen rose 0.4% to 109.46 per dollar
Bonds
- The yield on 10-year Treasuries advanced three basis points to 1.26%
- Germany’s 10-year yield was little changed at -0.45%
- Britain’s 10-year yield was little changed at 0.57%
Commodities
- West Texas Intermediate crude rose 1.4% to $73.39 a barrel
- Gold futures rose 1.5% to $1,832.40 an ounce
Upcoming data
- AU Q2 PPI : 0.5% exp.
- AU June Retail Sales : 0.3% exp.
- EU Q2 German Prelim GDP : 2.0% exp.
- CA May GDP : -0.3% exp.
- US June Core PCE Price Index : 0.6% exp.
- US July Chicago PMI : 64.2 exp.
- US July Revised UoM Consumer Sentiment : 80.8 exp.
- CN July Manufacturing PMI & Non-Manufacturing PMI : 50.8 & 53.4 exp.
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