Welcome to our daily market update where we help keep you informed on the latest happenings in the world of FX and show you what this means for the Mighty Aussie Dollar.
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Key Data Being Released Today
| United Kingdom – | BoE Interest Rate Decision | |||
| Construction PMI (Jul) | ||||
| United States – | Initial Jobless Claims | |||
| Trade Balance (Jun) | ||||
Macro Report
Risk assets had a rather positive session overnight, with both European and US sharemarkets both lifting. The NASDAQ closing at its highest level since 4 May (+2.6%) and the S&P 500 +1.6%.
US treasuries were firmer on Wednesday (yields lower). San Francisco Federal Reserve President Mary Daly said it would be ‘reasonable’ for the Fed to lift rates 50 basis points in September rather than 75bp. US 10-year yields fell 4 points to near 2.70%.
In FX, currencies were mixed. The AUD did gain from its Asian session lows.
In US economic data, the ISM services index rose from 55.3 to 56.7 in July (survey: 53.5). The S&P Global services index fell from 52.7 to 47.3 in July (survey: 47). Factory orders rose by 2% in June (survey: 1.1%). Mortgage applications rose 1.2% in the past week after falling 1.8% in the prior week.
Coming up this evening, the Band of England policy decision is slated for release. Analysts are mixed on the expected rise, mostly skewed towards 50bps ahead of a possible 25bps.
Outside of that we will also see German factory orders and weekly US jobless claims.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6957 | 0.20 |
| AUD/JPY | 93.08 | 0.13 |
| AUD/CNH | 4.704 | 0.19 |
| DXY | 106.39 | 0.10 |
| Rates | Yield (%) | Change |
| US 10 Year | 2.715 | 0.009 |
| Aus 10 year | 3.156 | 0.032 |
| Equities | Level | Change (%) |
| S&P 500 | 4155 | 1.56 |
| NASDAQ | 12668 | 2.59 |
| ASX 200 | 6983 | 0.11 |
| Commodities | Level | Change (%) |
| Iron Ore | 109.5 | -4.5 |
| Gold | 1765.39 | 0.3 |
