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Market Recap
A mixed session on Wall Street overnight saw the Nasdaq close down by 1%, the S&P 500 by 0.6%, while the Dow Jones gained 0.2%. U.S. 10-year yields fell 4 bps to 4.24%, while crude oil rose 0.7% to $78.10 a barrel. The AUD/USD traded in a 0.6510/0.6582 range before settling at 0.6545/50 ahead of the Asian open.
The Eurozone’s June M3 Money Supply surprised at 2.2% (1.9% expected), while Germany’s IFO Business Climate for July read 87.0, falling short of the 89.0 forecast. EUR/USD and GBP/USD jumped 20 points to reach 1.0857 and 1.2912, respectively.
Into the London lunch, the antipodes continued to face pressure, trading down to 0.6519 (AUD/USD) and 0.5893 (NZD/USD), respectively. EUR/USD remained strong, trading within 10 points of 1.0859 highs, while GBP/USD slid back to 1.2871. USD/JPY steadied above 152.00.
A handful of data came out of the U.S., with the biggest surprise being the annualized Q2 GDP reading of 2.8%, well above the 2.0% forecast. Personal consumption and core PCE figures also beat expectations, reading 2.0% and 2.7%, with expectations of 2.3% and 2.9%, respectively. Weekly jobless claims data was marginally better than expected, while June’s durable goods orders tumbled -6.6%, falling well short of the 0.3% estimate.
Day Ahead
The U.S. Core PCE Price Index for June is likely to suggest ongoing disinflation but may not be as favorable for the theme as the core CPI released earlier in the month. This number should have less of a market impact than typically the case as the Q2 data will be released the day prior alongside the real GDP figure.
AUD/USD made new recent lows of 0.65105 overnight. Demand rests at 0.6460/80, with the exporter community beginning to take note of the recent pullback, while offering interest remains above 0.6700.
Economic Data to Watch
- New Zealand: July ANZ Consumer Confidence Index
- Japan: July Tokyo CPI Ex-Fresh Food (y/y), July Tokyo CPI (y/y)
- United States: June Core PCE Price Index (m/m), June PCE Price Index (m/m), June Personal Income, June Personal Spending, July University of Michigan Sentiment
Disclaimer
The information provided in this daily market update is for informational purposes only and should not be considered as financial advice. Trading Forex and CFDs involves significant risk of loss and may not be suitable for all investors. Past performance is not indicative of future results. CA Markets does not guarantee the accuracy or completeness of the information provided, and we recommend consulting with a qualified financial advisor before making any trading decisions. Users are solely responsible for their own trading activities and decisions.
