Pressure points
• Shaky sentiment. A better than expected US ADP employment report pushed up US bond yields. This supported the USD & weighed on equities.• AUD weaker. Negative risk sentiment & a stronger USD have exerted more pressure on the AUD. We think this can continue near-term.• Seasonal forces. August tends to be a negative month for growth-linked assets like the AUD. With the USD typically strengthening at this time of year. Risk sentiment remained negative overnight. Yesterday’s news that ratings agency Fitch had downgraded the US’ sovereign credit rating somewhat dampened risk appetite, though it was another strong US ADP...