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US stocks strengthened as predictions of increased market volatility did not come true after the assassination attempt on Republican Presidential candidate Donald Trump. Investors may be focusing on the growing expectation that Trump will win the November election, bolstered by the prospect of upcoming interest rate cuts. The yield on the US 10-year Treasury rose by 4.7 bps to 4.23%.
The US Empire State Manufacturing Index shrank for the eighth consecutive month in July, reaching -6.6, while the prices received by producers dropped to a one-year low.
Overnight, Fed Chief Powell stated that last three inflation data have been reassuring, and the economy is doing well overall. He observed that the job market is stabilizing. Powell highlighted that because of the time it takes for monetary policy changes to affect the economy, the Fed can act pre-emptively before inflation hits the 2% target. Additionally, he clarified that he will not provide any indications about when interest rate cuts might occur, and while current monetary policy is tight, it is not overly restrictive.
Overall, the USD strengthened against all other G10 currencies in the past 24 hours.
Economic data to watch out for.
• JP – Tertiary Industry Activity m/m
• EU – Trade Balance
• Canada– CPI m/m
• US – Core Retail Sales m/m
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6762 |
| AUD/NZD | 1.1132 |
| AUD/JPY | 106.90 |
| AUD/CNY | 4.9197 |
| AUD/EUR | 0.6205 |
| AUD/GBP | 0.5215 |
AUD/USD 24 Hour
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