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
A mixed session on Wall St overnight saw the Nasdaq close -1%, the S&P 500 -0.6%, while the Dow Jones gained 0.2%. U.S. 10-year yields fell 4 bps to 4.24%, while crude oil rose 0.7% to $78.10 a barrel.
AUD/USD traded in a 0.65105/.6582 range before settling at 0.6545/50 ahead of the Asian open.
The Eurozone’s June M3 Money Supply surprised at 2.2% (1.9% exp.) while Germany’s IFO Business Climate for July read 87.0 short of 89.0 forecasts. EUR/USD and GBP/USD jumped 20pts to reach 1.0857 and 1.2912.
Into the London lunch and the antipodes continued to face pressure trading down to 0.6519 and 0.5893 respectively. EUR/USD remained strong trading within 10pts of 1.0859 highs while GBP/USD slid back to 1.2871. USD/JPY meanwhile steadied above 152.00.
A handful of data coming out of the US, the biggest surprise of which was annualised Q2 GDP reading 2.8% well clear of 2.0% forecasts. Personal consumption and core PCE figures also beat 2.0% and 2.7% with expectations reading 2.3% and 2.9% respectively. Weekly jobless claims data was marginally better than expected while June’s durable goods orders tumbled -6.6% to be well short of 0.3% estimates.
U.S. Core PCE Price Index for June today is likely to suggest ongoing disinflation but may not be quite as favourable for the theme as the core CPI released earlier in the month. The number should have less of a market impact than typically is the case as the 2Q data will be released the day prior alongside the real GDP figure.AUD/USD made new recent lows of 0.65105 overnight. Demand rests at 0.6460/80 with the exporter community beginning to take some note of the recent pullback, while offering interest remains above 0.6700.
Economic Data
• NZ – Jul. ANZ Consumer Confidence Index
• JP – Jul. Tokyo CPI Ex-Fresh Food y/y
• JP – Jul. Tokyo CPI y/y
• US – Jun. Core PCE Price Index m/m
• US – Jun. PCE Price Index m/m
• US – Jun. Personal Income
• US – Jun. Personal Spending
• US – Jul. University of Mich. Sentiment
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
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.
