Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com
Global equity markets saw modest gains with minimal economic data influencing the moves. The S&P 500 rose by 0.3%, while the Euro Stoxx 50 and FTSE 100 closed up 0.6% and 0.1% respectively. Bond yields declined, with the US 10-year yield down by 2 bps to 3.79%.
The annual revision to US payroll growth drew attention due to the recent slowdown in the labour market. The Bureau of Labor Statistics reported a preliminary downward revision of 818k jobs, or about 68k per month for the year up to March. This marks the largest downward adjustment since 2009. The final data will be released next year. These revisions align with the Fed’s move towards a more balanced policy approach that takes growth dynamics into account.
The minutes from the July FOMC meeting showed that several Fed officials considered a rate cut before unanimously deciding to maintain the current rates. The ‘vast majority’ of policymakers noted that if the data continued to align with expectations, easing at the September meeting would be appropriate. In a more balanced tone, most participants acknowledged that risks to employment had increased, while inflation risks had diminished.
The USD continued its recent decline, weakening against G10 currencies as Fed rate cuts seem imminent.
There’s not much happening on the economic calendar today. The spotlight will be on PMI data in Australia and Japan, though these aren’t expected to be market-moving. However, the PMI numbers from the EU, UK, and US tonight will receive more attention.
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6748 |
| AUD/NZD | 1.0954 |
| AUD/JPY | 98.04 |
| AUD/CNY | 4.8117 |
| AUD/EUR | 0.6049 |
| AUD/GBP | 0.554 |
Disclaimer:
The market update provided by Corporate Alliance FX (CAFX) is for reference only and does not constitute a bid, levy, offer or invitation to offer for the financial product, the basis for any contract or commitment, a recommendation for the purchase or sale of any investment instruments, financial, legal, tax, investment advice, investment advice or other opinions. It will not be legally liable for any consequences or losses caused by the information or content involved.
Corporate Alliance Group Pty Ltd T/A Corporate Alliance FX (CAFX) (ABN 58 167 119 226, AFSL 523351) (i.e. CAFX), CAFX independently holds the Australian Financial Services licence no. 523351 (AFSL), so CAFX is regulated by the Australian Securities and Investment Commission (ASIC) and, and although ASIC is a strictly regulatory body, it does not endorse a specific financial product. ASIC’s regulation of CAFX applies to all services under the financial licence held by CAFX, including the issuance of foreign exchange settlement, foreign exchange payments, foreign exchange risk control, hedging, market making and providing financial advice.
