Market Sentiment was somewhat upbeat with new of COVID vaccine overshadowing a rise in cases. The S&P500 closed up 1.1%, bond yields rose and US 2yr treasury yields bounced off 0.13% to 0.16%, while the 10yr yield rose from 0.57% to 0.65%. On the commodities front Brent oil futures were up 2.1% to $43.25, copper gained 2.1%, iron ore remained unchanged to $106.85 whilst gold came off 0.3%.
US Dollar Index closed relatively unchanged.
EUR traded between 1.1275 and 1.1320.
USD/JPY ranged between 106.64 and 106.95.
AUD traded between 0.6925 and 0.6970.
NZD ranged between 0.6560 and 0.6590.
AUD/NZD traded between 1.0590 and 1.0566 – a level not seen since April.
Coronavirus headlines continue to drive market volatility along with key economic data releases and central bank meetings. In US we have CPI data, Fed’s Beige Book, retail sales and unemployment claims data out from Tuesday to Thursday whilst in Australia, June labour force survey data are released on Thursday.
AUD/USD continues to trade within a tight range where there is demand beyond 0.6920, and again at 0.6880 while offering interest at 0.7000/20 region should prove difficult to reach on the first attempt.
Event Risk Data Today
New Zealand: June Food Price Index is expected to gain 0.8%
India: Inflation (market f/c: 5.3%).
UK: BOE Governor Bailey speaks
US: June Monthly Budget Statement expected show signs of pressure post the colossal relief package. The FOMC’s Williams will speak (01:30 AEST).