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The AUD USD pair trades around 0.6742 (at the time of this writing) with yet another day without significant economic data, market participants will turn their attention to the upcoming US CPI figures later tonight.
US equities had minor changes overnight, staying close to their all-time highs. Bond yields increased slightly, with the US 10-year bond yield rising by 1.6bps to 4.29%. The USD remained strong as Fed Chair Powell’s comments maintained a neutral stance.
Federal Reserve Chair Powell addressed Congress, acknowledging recent positive data but stating that the committee wants more proof that inflation is returning to target levels. He also recognized the risks of delaying rate cuts or not easing enough. The overall market reaction was muted, with little impact on foreign exchange rates.
Starting the day with China on the inflation front, markets expect CPI to grow by 0.4% yoy in June, similar to the 0.3% yoy increase in May.
In New Zealand, RBNZ MPC will meet today, and is widely expected to hold the OCR unchanged at 5.5%. Data since May suggest activity remains weak
Economic data to watch out for.
• JP – Jun. PPI y/y
• JP – Jul. Bloomberg Economic Survey
• JP – BOJ Outright Bond Purchase, 1 – 3, 5 – 10 years
• CN – Jun. CPI y/y
• CN – Jun. PPI y/y
• NZ – RBNZ Official Cash Rate
• UK – BOE’s Huw Pill Speaks
• US – May. Wholesale Trade Sales m/m
• US – Fed’s Goolsbee, Bowman speak
• UK – Jun. RICS House Price Balance (edited)
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6742 |
| AUD/NZD | 1.1004 |
| AUD/JPY | 108.76 |
| AUD/CNY | 4.9140 |
| AUD/EUR | 0.6234 |
| AUD/GBP | 0.5272 |
AUD/USD 24 Hour
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