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Stocks showed mixed performance. The S&P 500 rose by 0.3%, while the Euro Stoxx 50 and FTSE 100 ended the day up 0.7% and 0.6% respectively. US markets are currently factoring in about a 35 bps rate cut for the Fed’s September meeting and around 104 bps of cuts for 2024. The yield on the US 10-year dropped by 2 bps to 3.83%.
The focus offshore was the US CPI, with both the headline and core measures increasing by 0.2% month-on-month, as expected. This confirms the ongoing disinflationary trend, keeping the Fed on course for a rate cut in September.
The USD weakened, and bond yields declined in most developed Northern Hemisphere markets.
Australian labor market data will be released, expected to show a slight cooling with the unemployment rate remaining at 4.1%. At 2:00 pm, China will release data on retail sales, industrial production, and fixed asset investment. Later in the evening, we’ll see UK GDP figures, and the US will report on monthly retail sales and jobless claims.
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6596 |
| AUD/NZD | 1.0997 |
| AUD/JPY | 97.17 |
| AUD/CNY | 4.7154 |
| AUD/EUR | 0.5990 |
| AUD/GBP | 0.5144 |
AUD/USD 24 Hour
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