Market Update 8/08/2024

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

Equities were positive initially, with the S&P 500 up by as much as 1.7% in early trading. However, these gains have faded and the index is now down 0.5%. Meanwhile, bond yields have risen, with the yield on the US 10-year increasing by 8.00 bps to 3.97%.
 
With no major US data releases, FX volatility continues to decrease, with the USD DXY stabilizing overnight. Near-term attention will be on Fed speak before three key risk events this month:
 
1) Next week’s CPI data, with market estimates showing core CPI slightly increasing to 0.2% m/m (from 0.1% prior).
2) The state of the labor market from the BLS quarterly establishment survey report on 21^st August, which includes revisions to the monthly Non-farm Payroll report.
3) The Jackson Hole Symposium from 22^nd to 24^th August.
 
The USD has moved away from recent lows and traded sideways.

Later today, RBA Governor Bullock will speak at 2:40 pm about the Australian economy from a regional perspective. At 3:00 pm, the RBNZ will release its survey of expectations, which is expected to show a further decline in 2-year inflation expectations. Tonight at 12:30 am, the US jobless claims data will be released.

Mid market rates.

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.