Good Morning,
Market Headlines
U.S equities markets saw the S&P 500 and the NASDAQ slightly higher with a 0.4%, and 0.8% respectively whilst the Dow fell .2%. Bond yields rose slightly, while the USD fell slightly. Vaccine optimism and some strong US economic data were contributing factors. Commodities markets saw brent crude oil futures rose 1.8% to $45.90, copper rose 0.4%, iron ore fell 2.2% to $121.35, and gold fell 0.1%.
Currencies
AUD/USD: 0.7150 – 0.7198
EUR/USD: 1.1798 – 1.1843
GBP/USD: 1.3082 – 1.3169
USD/JPY: 106.10 – 106.58
USD/CAD: 1.3177– 1.3229
NZD/USD: 0.6521 – 0.6558
AUD/JPY: 76.00 – 76.53
AUD/NZD: 1.0965 – 1.0998
AUD Thoughts
- AUD/USD treads water between 0.7190 and 0.7198 after Tuesday’s run-up.
- US-China trade deal optimism helped markets overcome challenges to the American push for virus treatment/vaccine.
- Equities remain on the front foot, US 10-year treasury yields rise to the one-week top.
- Australia’s Construction Work Done decorates today’s calendar.
AUD bounced off the monthly support line, currently around 0.7150, enables the bulls to aim for August 07 top near 0.7240. Though, a clear break beyond 0.7200 becomes necessary. Meanwhile, a downside break of 0.7150 can attack 0.7100 and the monthly low of 0.7075 but 0.7065/60 area including June month’s top and July 24 low will restrict the quote’s additional downside
Event Risk Data Today
AU – Market expect construction work in Q2 to exhibit broad-based weakness across the private sector, respectively forecasting declines of -3.4% and -7.0% after Q1’s -1.0%.
NZ – July trade balance is expected to have returned to surplus in July as import demand remained weak (prior: $426m, market f/c: $293m).
US – July durable goods orders rose in June on increased demand for transportation equipment. Momentum is set to persist in July (prior: 7.6%, market f/c: 4.5%).