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AUD/USD gained overnight trading 0.6670 amid a weaker USD. The RBA’s caution over the inflation outlook is keeping market expectations of another RBA rate hike on the cards, a support for the Aussie.
US bond yields eased, with the 10-year yield dropping 2 basis points to 4.44%, as Federal Reserve Chair Jerome Powell said in the panel discussion that US returning to a disinflationary trend. However, an unexpected increase in job vacancies pushed bond yields back up. The DXY fell after briefly surpassing 106 and the USD weakened against most of its G10 peers, while equity markets showed mixed results.
US job openings (JOLTS) unexpectedly increased in May, breaking a months-long decline that indicated a gradual slowdown in labor demand. The number of available positions rose to 8.14 million from a revised 7.92 million in the previous month, which was the lowest in three years
Economic data to watch out for.
• NZ – Jun. ANZ Commodity Price m/m
• AU – May. Building Approvals m/m
• AU – May. Private Sector Houses m/m
• CN – Jun. Caixin China PMI Composite & Services
• EU – ECB’s Guindos, Cipollone, Lagarde Speak
• EU – May. PPI y/y
• US – Fed’s Williams Speaks
• US – MBA Mortgage Applications
• US – Jun. Challenger Job Cuts y/y
• NZ – Jun. CoreLogic House Px m/m
• US – Jun. ADP Employment Change
• CA – May. Int’l Merchandise Trade
• US – Initial Jobless Claims
• US – May. Trade Balance
• US – Jun. ISM Services Index
• US – FOMC Meeting Minutes
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6670 |
| AUD/NZD | 1.0961 |
| AUD/JPY | 107.65 |
| AUD/CNY | 4.8728 |
| AUD/EUR | 0.6204 |
| AUD/GBP | 0.5255 |
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