10th July 2020 - Dollar picks up a safe haven bid over COVID-19 angst


Good Morning,

Market Headlines

The US dollar outperformed with relentlessly rising US COVID cases worrying investors to the point where the US benchmarks were mostly lower by the close of play. The S&P500 closed 0.6% lower for the day with bond yields also finishing softer. On the commodities front, Brent crude futures declined by 2.5% to $43.25, copper up 0.6%, iron ore slightly rose by 0.2% to $106.85, and gold declined by 0.3%

Currencies

US Dollar Index closed 0.3% higher .

EUR ranged between 1.1370 and 1.1286.

USD/JPY ranged between 107.10 and 107.40.

AUD reached 0.7001 then retraced to 0.6950.

NZD ranged between 0.6601 and 0.6550.

AUD/NZD ranged between 1.0625 and 1.0590.

AUD Thoughts

AUD still testing offers around 0.7000 before retracing back to 0.6950/60 area this morning. Another run higher to test further offers in the 0.7000/20 will show interest with domestic Retail Sales data out mid-morning.

Event Risk Data Today

Australia: Retail Sales

New Zealand: June Electronic Retail Spending is expected to be a strong number with market forecast being up 18.0%.

Canada: Labour force data

China: June Caixin PMI, markets are expecting further monetary easing to continue support money supply (f/c: 11.1%yr), an accommodative policy has also boosted credit availability and demand and new loans are also expected to increase.

Eurozone: June services PMI

US: June PPI inflation

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