USD

• Upbeat tone. US equities have rebounded over recent days, while bond yields & the USD lost ground. AUD & NZD have edged a little higher.• US macro. A run of weak US data has boosted Fed rate cut expectations. US CPI inflation & retail sales are a couple of important releases out next week.• Data flow. China trade data due today. Bank of England expected to cut rates. Next week RBA looks set to lower rates after holding steady in July. Global Trends Questions about the health of the US economy, an adjustment in interest rate views, and a...

• 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...