17th September 2021 - AUD/USD drops to multi-week lows below 0.7300 on broad USD strength


Market Headlines

Bond yields and the US dollar rose following strong US retail sales data. The S&P500 is down 0.2% after paring deeper losses. US 2yr treasury yields rose from 0.21% to 0.22%, while the 10yr yield rose from 1.30% to 1.35%. Commodities, Brent crude oil futures rose 0.3% to $76, copper fell 3.2%, gold fell 2.2%, and iron ore fell 6.9% to $106 – a 14-month low (for a total decline of 58% since May).

Overnight Currency Range

AUD/USD 0.7274 0.7348

EUR/USD 1.1750 1.1820

GBP/USD 1.3765 1.3852

USD/JPY 109.21 109.83

NZD/USD 0.7059 0.7143

USD/CAD 1.2617 1.2700

USD/CNH 6.4256 6.4543

AUD/JPY 79.71 80.36

AUD/NZD 1.0280 1.0319


AUD Thoughts

A very bare economic data calendar to finish out the week with moves in Asia likely to take their lead from Asian stock performance and the commodity price move lower. AUD/USD traded in a softer 0.7274/.7348 range overnight with demand expected ahead of 0.7250/60 while supply should materialise as we approach 0.7400.


Event Risk Data Today

New Zealand: The return of COVID-19 restrictions is likely to result in a weaker manufacturing PMI in August.


Euro Area: The final release of the CPI for August is forecast by the market to be at or near the initial estimate (market f/c: 3.0%yr).


UK: The August retail sales report is expected to show a rotation from goods to recently-reopened services (market f/c: 0.5%).


US: Following consumer sentiment’s Delta-driven drop in August, September’s University of Michigan sentiment report is expected to show a modest partial reversal (market f/c: 72).

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.