Good Morning,
Market Headlines
Mixed sentiment overnight with recent optimism dented by news of US-China consulate closures. Equity markets saw the S&P500 hit a fresh five-month five hight up 0.6%, while currencies and bonds oscillating remaining relatively unchanged. For Commodities, Brent crude futures dropped 0.1% to $44.25, copper declined by 1.1%, iron ore retraced by 0.4% to $110.65, whilst gold gained 1.4%.
Currencies
AUD/USD: 0.7113 – 0.7184
AUD/EUR: 0.6167 - 0.6209
EUR/USD: 1.1507 – 1.1601
GBP/USD: 1.2644 – 1.2743
USD/JPY: 106.76 – 107.29
USD/CAD: 1.3400 – 1.3482
NZD/USD: 0.6633 – 0.6689
AUD/JPY: 76.01 – 76.86
AUD/NZD: 1.0709 – 1.0743
AUD Thoughts
- AUD/USD seesaws between 0.7130 and 0.7156 after stepping back from fresh 15-month high of 0.7183.
- The latest updates on US-China tussle challenge hopes of further stimulus, vaccine news.
- Wall Street offered mild gains after a volatile session, Gold and US dollar stay on the previous path.
- Aussie NAB Business Confidence, Australian Federal Budget update will be the key to watch.
Markets will keep eyes on Australian Treasurer Josh Frydenberg’s announcement of the Federal Budget and update on the economic policies to tame the pandemic. Also up in the radar is the NAB’s (Q2) readings of Business Confidence, expected -8 versus -11 prior.
Unless breaking below June 2020 top surrounding 0.7065, AUD/USD prices are less likely to revisit the 0.7000 threshold. On the contrary, odds of its attack to 0.7200 round-figures, near highs marked in late-February and April of 2019, keeps increasing.
Event Risk Data Today
AU: Federal Budget Update
AU: The Q2 NAB Business Confidence Survey
EU: Consumer Confidence
US: Initial Jobless Claims
US: The Kansas City Fed Activity Survey