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A relatively quiet night saw all three U.S. equity indices close almost unchanged on the day. U.S. 10-year yields were also flat, while crude oil fell 1.3% to $77.40 a barrel.
The AUD/USD remained heavy and closed at the lower end of its .6612/46 range.Minimal activity into the London lunch with USD/JPY attempting to recover from 155.825 lows to trade back above 156.00. The antipodes drifted lower to hit lows of 0.6621 and 0.5960 while EUR/USD and GBP/USD fell further to 1.0857 and 1.2889.
Into the NY morning and little in the way of meaningful US data in early trade. Later in the session and the Richmond fed manufacturing Index for July fell to -17 from -10, worse than forecasts of -6 while June Existing Home Sales fell by 5.4% to 3.89 mio, worse than the predicted 30% decline to 3.99 mio.
Day Ahead
Another quiet day in Asia with nothing of note on the calendar.In Canada, the BoC’s rate decision will be announced this evening. Markets expect a 25 bps rate cut, an outcome the market is placing a ~85% probability on. Guidance on further cuts is likely to be cautious given consecutive months of underlying inflation. This meeting will include an updated forecast as part of the Monetary Policy report release.
AUD/USD remained heavy on its way to an overnight low of .6612. Demand now rests at .6580/90, while offering interest remains above .6700
Economic Data
• JP – Jul P. Jibun Bank Japan PM Mfg
• EU – ECB’s Guindos Speaks
• EU – Jul P. HCOB Eurozone Manufacturing PMI
• UK – Jul P. S&P Global UK Manufacturing and Services PMI
• US – MBA Mortgage Applications
• EU – ECB’s Lane Speaks
• US – Jun P. Wholesale Inventories m/m
• CA – Bank of Canada Rate Decision
• US – S&P Global US Manufacturing PMI
• US – Jun. New Home Sales
• US – Fed’s Bowman, Logan Speak
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6590 |
| AUD/NZD | 1.1133 |
| AUD/JPY | 101.91 |
| AUD/CNY | 4.8018 |
| AUD/EUR | 0.6074 |
| AUD/GBP | 0.5113 |
AUD/USD 24 Hour
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