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The equities were flat overnight, with the S&P 500 dipping 0.1%, the Euro Stoxx 50 down 0.3%, and the FTSE 100 falling 1.0%. Meanwhile, bond yields declined, and the USD dropped to its lowest level this year as markets awaits US payroll revisions, FOMC meeting minutes tomorrow and Fed Chair Powell’s speech from Jackson Hole later this week. The US 10-year yield decreased by 5.1 bps to 3.82%.
Fed speakers overnight (Waller, Bostic, and Barr) avoided discussing the policy outlook, focusing instead on topics like innovation for inclusion and cybersecurity. This leaves the market looking ahead to Powell’s update at Jackson Hole, scheduled for 2:00 am Saturday (NZT).
The USD has weakened for the 3rd consecutive day, with the US Dollar Index (DXY) dropping to a new low for the year at around 101.36.
The economic calendar is relatively quiet today. Japan’s Trade Balance data will be released just before noon at 11:50 am, followed by New Zealand’s Credit Card Spending at 3:00 pm. Overnight, there are two key events: the BLS will issue its preliminary annual payrolls benchmark revision at 2:00 am, followed by the FOMC Meeting Minutes at 6:00 am NZT.
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6750 |
| AUD/NZD | 1.0957 |
| AUD/JPY | 98.04 |
| AUD/CNY | 4.8048 |
| AUD/EUR | 0.6064 |
| AUD/GBP | 0.5178 |
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