14th July 2020 - Busy week ahead with an array of data releases that could see the AUD in for a ride


Market Headlines

Topsy-turvy evening in markets overnight with virus updates hitting risk sentiment. The S&P500 rallied to a five-month high before retracing and closing 0.9% lower, and the NASDAQ100 reached record high before retracing and closing -2.2% lower. Commodities, Brent crude futures came off 1.9% to $42.95, copper was up 1.1%, iron ore rose by 4.3% to $111.40 (the highest level since August 2019, helped by China’s economic recovery), and gold rose 0.3%

Currencies

US Dollar Index finished 0.2% lower on the day.

EUR ranged between 1.1300 and 1.1375.

USD/JPY ranged between 106.80 and 107.32.

AUD initially traded from 0.6960 to 0.6993.

NZD similarly traded between 0.6555 and 0.6594.

AUD/NZD traded between 1.0595 and 1.0525.

AUD Thoughts

- AUD/USD is closely correlated to the performance of US equities and is falling in tandem.

- US earnings and Aussie jobs market data will be key for AUD/USD.

AUD/USD, look for the pressure to remain to the downside for now with demand as we approach 0.6900 expected to slow any move while offering likely rest around the recent highs of 0.6990/.7000.

Event Risk Data Today

Australia: June Business Sentiment Survey and Weekly Payroll Data

New Zealand: June REINZ House Sales and Prices.

China: June Trade Balance, market expectations to be slightly down from $62.9bn to $57.4bn in June.

Europe: June ZEW Survey

Germany: June CPI.

UK: May average Earnings & Employment/May GDP & IP

US: June CPI. FOMC’s Brainard (04:00 AEST) and Bullard (04:30 AEST) will speak

Recent Posts

See All

Disclaimer

This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711.  The material contains general commentary only and does not constitute investment or any other advice.  Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors.  This information has been prepared without considering your objectives, financial situation or needs.  Please seek your own independent legal or financial advice before proceeding with any investment decision.  The information is believed to be accurate at the time of compilation and is provided in good faith.  Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract.  This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change.  Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.Navigate Global Payments Pty Ltd nor its related parties or officers accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site.