The AUDUSD opens in Asia today under 0.68-cents, as the US-dollar rebounds and traders position ahead of the Australian Employment data for June due out today. Expectations are for 15k jobs added and an unemployment rate remaining at 3.6%. The pair reflects the cautious mood from markets, as we await the next round of data to formulate expectations from analysts on how central banks will react in coming meetings, including our own RBA. They have highlighted that the Employment cycle is one of the key barometers for their policy decision going forward. Also due today is the PBoC interest rate decision, where there has been mounting pressure for them to ease policy. Headlines have been mixed over whether policy makers are ready to add stimulus to their economy and pessimism towards their realty sector, which is in turn weighing on the AUDUSD, as a key export partner with China. Trading wise today, we look to AUDUSD support at 0.6715 on further deterioration, with resistance at 0.6840 should we see gains back above 0.68-cents.
Wall Street closed higher, shrugging off poor second quarter earnings reports from Goldman Sachs and looking through to better performances from smaller institutions in the banking sector. The DJI was up 0.3%, the S&P500 closed higher, gaining 0.2% and the Nasdaq also closed up 0.03% for the session. Australian shares look to open flat today, with key June Employment data out later in the morning, that could offer clues as to how the RBA will approach the decisions at their next meeting in August.
Gold prices traded near recent highs, as investors maintain bets on the Fed moving to a pause on rate hikes soon.
Copper prices eased further on the LME as investors continue to assess the impact of slower global growth and demand from China, along with a stronger US-dollar on the day. Iron Ore prices gave back some of its previous session gains as traders contemplate the introduction of further stimulus from Beijing.
Brent Crude Oil prices drifted lower as traders preferred to take profits during earlier session gains prompted by tighter US crude supply and suggestions that China will stimulate its flagging economic growth. Brent closed lower by just 17 cents to $79.46/bbl.