Amid a holiday-thinned session in the US, the US dollar rose slightly further, and bond yields remained elevated - residual effects of yesterday’s strong inflation data. The S&P500 is up 0.2. The US dollar index is up 0.3% on the day, and at a 14-month high. EUR slipped from 1.1488 to 1.1450 – a 16-month low. USD/JPY ranged between 113.81 and 114.16, the yen outperforming. AUD fell from 0.7320 to 0.7287 – a one-month low. AUD/NZD rose from 1.0370 to 1.0391.The US treasury bond market was closed, but futures were open, implying 10yr yields rose further from 1.55% to 1.60%.
Commodities: Brent crude oil futures fell 0.3% to $82, copper rose 3.7%, gold rose 0.6%, and iron ore rose 5.4% to $94.
Overnight Currency Range
Currency Pair Low High
AUD/USD 0.7287 0.7340
EUR/USD 1.1446 1.1487
GBP/USD 1.336 1.3431
USD/JPY 113.81 114.15
NZD/USD 0.7013 0.7071
USD/CAD 1.2472 1.2596
USD/CNH 6.3848 6.4075
AUD/JPY 83.08 83.65
AUD/NZD 1.0358 1.0398
The AUD/USD remained heavy overnight on its way to a low of .7287. The next level of support can be found ahead of .7260 while offering interest is consistent to .75c. A quiet day ahead to round out a volatile week. The US Jobs and Labor Turnover survey for September released this evening could provide more insight into tightness in the labour market. Job openings remained elevated in August while the private sector quits rate moved to a new all-time high.
Event Risk Data Today
NZ: The October manufacturing PMI will highlight NZ’s continued recovery as Auckland’s restrictions eased.
Europe: Industrial production should stabilise in September after August’s drop (market f/c: 0.2%).
US: Hire and quit rates and job openings in September’s JOLTS report will show the strength of the job market as well as the confidence of participants. November’s University of Michigan sentiment survey is likely to again show confidence lagging activity, in contrast to most developed markets (market f/c: 72.5).