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Market Update 4/07/2024

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

AUD/USD rallied on Wednesday trading at 0.6700 after the weaker US economic data. 

Equities were stronger. The S&P 500 reached a new all-time high, surpassing 5,535 marking its 33rd record in 2024. The weak US ADP labour market report, along with a sluggish services sector, led US markets to increase the likelihood of a Fed rate cut by about 10% for September. This data pushed the USD DXY and US bond yields lower, with the 10-year yield dropping 7bps to 4.36%.
The USD stayed low after the latest Fed meeting minutes revealed that officials are waiting for clearer signs of cooling inflation and are split on how long to maintain high rates. Headlines indicate that the committee is nearing a decision to ease, but hasn’t made a final move yet. Other US data showed the services sector contracted at the fastest rate in four years, private payrolls grew more slowly, and continuing jobless claims increased for the ninth consecutive week.

Economic data to watch out for.

• AU – May. Trade Balance
• UK – Jun. New Car Registrations y/y
• UK – Bank of England Bank Liabilities/Credit Conditions
• UK – Jun. DMP 1 Year CPI Expectations
• UK – Jun. S&P Global UK Construction PMI 
• EU – ECB Publishes Account of June Policy Meeting
• CA – Jun. S&P Global Canada Composite PMI

Mid market rates.

Currency PairMid-market rate


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