US Treasury Announces Bond Buyback Scheme
AUD
The Aussie Dollar opens the day mixed, with the Middle East taking the spotlight again after three ships were struck in the Strait of Hormuz. Asian equities finished the day lower, with the ASX down 0.2% and the SHANGHAI COMP dropping 2.4%. Australia’s Wage Price Index came in as expected in the second quarter, up 0.8% and 3.2% annually. That was the fifth quarter in a row of 0.8%. At yesterday’s fireside chat, RBA deputy governor Andrew Hauser maintained a hawkish stance, citing 3 upside risks to inflation: developments in the Middle East, the rise in AI investment, and Australia's weak productivity growth. Markets continue to price less than one rate hike from the RBA for this cycle. Chinese 1-year and 5-year loan prime rates came in unchanged - as expected - at 3.00% and 3.50%. Australian employment data for July is set for release today at 11:30am. Employment has been volatile in recent months, with growth in June of 76k reflecting a large shift up in the participation rate from 66.7% to 67%. Unemployment Rate is set to remain at 4.4%, but this is not a consensus among economists, so volatility may be on the cards.
USD
The AUDUSD opens the day higher, with the pair rising back to fresh 2.5-month highs of 0.7123. The US Treasury sought to tackle longer-term borrowing costs overnight by announcing a buyback plan for 10-30 year Treasuries, weakening the USD. Wall Street was soft into the close, with the NASDAQ, S&P 500 and the DOW JONES all closing up 0.2%. FOMC meeting minutes were released last night, with Fed members noted that a hike was likely needed if inflation didn’t decline with the pass through from tariffs likely complete. Inflation risks were seen to be to the upside with several members favoring a rate hike in July. Trump spoke last night at a press conference, stating the US is launching the ‘most crushing economic operation’ against Iran. Looking forward tonight has Unemployment claims which are looking to pick up 1k to 210k and Philly Fed Manufacturing Index is set to drop to 24.1 from 41.4.
EUR
The Australian Dollar continues to lose ground against the strengthening EUR opening lower again this morning at 0.6102. President Legarde spoke yesterday however there were no comments on monetary policy. The Eurozone’s Current Account also recorded a €35 billion surplus in June 2026, up from €26 billion in previous month. Eurozone equities closed in the red with the DAX and CAC both -0.1%. Nothing major set for release today in terms of news with German PPI m/m, and German Buba Monthly Report both of which are not expected to move markets.
GBP
The Australian Dollar held steady against the pound overnight, opening basically flat this morning at 0.5237 after yesterday’s UK July CPI printed in line with expectations at 0.3% m/m and 2.9% y/y, while Core CPI rose 2.6% y/y. UK equities closed in the green with FTSE +0.1%. Nothing major set for release out of the UK with only CBI Industrial Order Expectations later this evening, however tomorrow there will be a myriad of UK data with their Retail Sales m/m and their Services and Manufacturing PMI’s.
NZD
AUDNZD opens lower this morning at 1.2000 after yesterdays NZD business price indexes all cam through higher than forecast. Little in the way of data today from our Kiwi neighbours, however tomorrow we will get their Trade Balance, and Credit Card Spending y/y.