AUD

• Consolidation. Modest moves across markets. US bond yields fell again. AUD ticked higher. AUD also strengthened a bit on most of the major crosses.• AU CPI. Inflation re-accelerated with base-effects related to electricity subsidies a factor. We expect the RBA to continue to ease policy slowly.• Data flow. Fed Governor Waller speaks tomorrow. US PCE deflator due Friday night. Next week AU GDP & US non-farm payrolls are on the schedule. Global Trends Fairly modest moves across markets overnight with little new information coming through to shift the dial. US equities ticked higher (S&P500 +0.2%), though stocks have lost...

• Cautious tone. Hawkish Fed soundbites & positive US data saw yields tick higher. US equities slipped back. AUD & NZD remain on the backfoot.• Fed speak. Chair Powell speaks at Jackson Hole tonight. Speech should generate some volatility & set the tone for next week’s trading as well.• Chair Powell. Market pricing more ‘dovish’ than the Fed’s view. Will Chair Powell lean against aggressive expectations or endorse them? Global Trends The cautious tone continued across markets overnight. Nervousness about tonight’s speech by US Fed Chair Powell at the annual Jackson Hole event (12am AEST) was compounded by ‘hawkish’ soundbites...

• Market wobbles. A small bout of risk aversion overnight. US equities declined while the USD ticked up. AUD & NZD lost some ground.• RBNZ meeting. RBNZ expected to cut rates again today. Will it flag even more easing down the track? NZD & AUD/NZD volatility likely to lift today.• Fed speak. Markets focused on Fed Chair Powell’s upcoming Jackson Hole speech (Fri night AEST). Will Chair Powell be more ‘dovish’ than priced? Global Trends A few risk-off wobbles across markets overnight. There was no new major news driving the moves, rather a pullback in some markets with stretched valuations...

• Consolidation. US equities drifted back a bit on Friday, but still rose over the week. USD a little softer. AUD & NZD ticked up modestly.• Event Radar. RBNZ expected to cut rates again (Weds). Global PMIs are due (Thurs). US Fed Chair Powell speaks at Jackson Hole (Fri night AEST). Global Trends A subdued end to last week across markets as macro and geopolitical forces pushed and pulled on various asset classes. On net, US equities drifted back a bit from record highs on Friday (S&P500 -0.3%), though it wasn’t enough to stop the S&P500 from posting its 6th...