Marketwatch APAC

Daily Insights
August 27, 2023

The dollar opened mixed in early Sydney trading but stable against the Aussie dollar after the much-anticipated Jackson Hole Federal Reserve Symposium on Friday.  Powell signaled that the Fed will raise rates if needed and will keep them high.  This goes in line to their philosophy of rate hikes going back to March 2022.  Most G10 currencies weakened against the dollar after the Powell statement except the Aussie.  The AUDUSD seems to be waiting for clearer direction as it pertains to China, a huge trading partner for Australia, with positive news with China’s stimulus and the U.S.-China trade talks but dismal economic releases, showing a continued slowdown.  Industrial profits have fallen for the 7th consecutive time in China, down 6.7% in July from a year earlier.  China is trying somehow to boost its economy, cutting its stamp duty on stock trade this weekend after the dismal industrial profits report.  China’s official PMI’s are to be released this coming Thursday, which will not paint a pretty picture.

Australia’s CPI is expected on Wednesday with its estimate to come in just slightly lower at 5.2% from a 5.4% the prior month. Housing prices for August will be released on Thursday.

Economic Calendar

AUD - Retail Sales m/m
GBP - Bank Holiday
EUR - M3 Money Supply y/y
EUR - Private Loans y/y
EUR - German Buba President Nagel Speaks
CNY - CB Leading Index m/m
GBP - BRC Shop Price Index y/y
JPY - Unemployment Rate

Market Indicators

Currency Pairs
Pair High Low
aud/usd 0.64411 0.63797
nzd/usd 0.59423 0.58848
aud/nzd 1.08717 1.08277
usd/jpy 146.635 145.72
usd/cad 1.364 1.35688
eur/usd 1.08417 1.07656
gbp/usd 1.26545 1.25478
aud/eur 1.68884 1.67747
aud/jpy 93.975 93.494
aud/cny 4.6808 4.6665
Equities and Commodities
S&P 500 4414.58
DOW 34392.7
Nasdaq 100 14978.1
ASX200 7133.39
GOLD 1915
WTI 80.09

This document is for information purposes only and does not constitute any recommendation or solicitation to any person to enter into any transaction or adopt any trading strategy, nor does it constitute any prediction of likely future movements in exchange rates or prices or any representation that any such future movements will not exceed those shown on any illustration. All exchange rates and figures appearing are for illustrative purposes only. You are advised to make your own independent judgment with respect to any matter contained herein.