Marketwatch APAC

Daily Insights
August 23, 2023

The Aussie dollar has rebounded to trade in the U.S. at a high of 0.6479 on a number of factors but primarily a slump in U.S. Treasury yields, which pulled down the U.S. dollar.  The U.S. Treasury 10-year bond yield marked the largest daily drop in almost a month.  Also helping the AUDUSD was the U.S. Dollar Index which fell from its 11-week high, down 1.7% today and a total of 3% in the last two days. It’s largest 2-day fall since 2009.  The Australian dollar and the yen were the two leaders gaining against the dollar but all G10 currencies were higher versus the greenback today.

U.S. Commerce Secretary Gina Raimondo will be visiting Beijing next week, which may smooth over U.S.-China relations. Earlier this week, the U.S. removed 27 Chinese entities from its Unverified List, which lifts sanctions from them further pointing to improving diplomatic ties.  This helped propel the Aussie dollar to its current high.

The market’s main focus continues to be the Federal Reserve Chair Powell’s speech at Jackson Hole on Friday.  U.S. jobs data will also help to give more direction on the U.S. dollar and the sentiment for Friday’s speech.

Economic Calendar

All - BRICS Summit
GBP - CBI Realized Sales
CAD - Corporate Profits q/q
USD - Unemployment Claims
USD - Core Durable Goods Orders m/m
USD - Durable Goods Orders m/m
USD - Natural Gas Storage
USD - FOMC Member Harker Speaks
All - Jackson Hole Symposium
GBP - GfK Consumer Confidence
JPY - Tokyo Core CPI y/y
JPY - SPPI y/y

Market Indicators

Currency Pairs
Pair High Low
aud/usd 0.64791 0.64108
nzd/usd 0.59852 0.59268
aud/nzd 1.08372 1.08048
usd/jpy 145.813 144.538
usd/cad 1.36036 1.35201
eur/usd 1.08714 1.08023
gbp/usd 1.27646 1.26144
aud/eur 1.6899 1.67713
aud/jpy 93.957 93.223
aud/cny 4.7259 4.7182
Equities and Commodities
S&P 500 4459.48
DOW 34473.2
Nasdaq 100 15285.5
ASX200 7178.04
GOLD 1917.2
WTI 78.69

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.