CNY

• Mixed markets. Equities slipped back & USD ticked up overnight. AUD & NZD remain on the backfoot. JPY weaker after some BoJ comments.• US data. US jobs report out tonight. There has been a tendency for non-farm payrolls to exceed analyst forecasts the past few months. Will this continue?• AUD trends. The unfolding pull-back in the AUD isn’t unusual at this time of year. Late-July/August is typically a negative period for the AUD. Global Trends Mixed fortunes across markets overnight with US and European equities slipping back, bond yields consolidating, and the USD ticking up a bit further. The...

• USD strength. Positive USD data & a patient Fed has supported the USD. This has weighed on other currencies like the AUD & NZD.• AU CPI. Q2 inflation softer than predicted. This reinforced expectations looking for the RBA to cut rates in August & deliver more ‘relief’ later this year.• Seasonal trends. USD rebound & unfolding AUD weakness inline with seasonal patterns at this time of year. Risk of more to come. Global Trends A run of positive US centric events boosted US bond yields and the USD overnight. Firstly, the latest batch of US data extended the recent...

• Dealmaker. Trade optimism supported US equities & USD at end of last week. AUD & NZD drifted a little lower. EUR ticked higher this morning.• US/EU deal. Over weekend US/EU announced a 15% tariff framework. Deal is similar to US/Japan. More ‘stability’ but economic headwinds remain.• Event Radar. Q2 AU CPI due (Weds). In the US this week earnings season continues, Q2 GDP & non-farm payrolls are out, & US Fed meets. Global Trends There was some relative outperformance in US markets at the end of last week. In contrast to modest falls across European/Asian equities on Friday the...

• Upbeat tone. No news has been good news. US equities rose, while bond yields & USD slipped back. AUD a bit higher at start of new week.• RBA guidance. RBA meeting minutes out today. Governor Bullock speaks later in the week. Will the RBA support expectations looking for multiple cuts?• Data flow. Global PMIs due later this week. US corporate earnings also in focus with over 100 companies in S&P500 reporting over the next few days. Global Trends It has been a relatively positive start to the new week for risk assets. The US S&P500 (+0.1%) touched yet another...