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Markets Update: USD declines driven by AUD and CNH after news
Today's important market events:
[USD] Initial Jobless Claims - 14:30 CEST
[USD] Philadelphia Fed Manufacturing Index (Jul) - 14:30 CEST
[USD] Existing Home Sales (Jun) - 16:00 CEST
Global Markets Roundup: 20 July 2023
APAC Stocks Mixed
Asian stocks were mixed on Thursday, following on from the choppy performance stateside. Investors digested data and corporate earnings, with Apple (AAPL) reportedly racing to develop its own generative AI tools to catch OpenAI.
European Equity Futures Softer
European equity futures are indicative of a slightly softer open, with the Euro Stoxx 50 down 0.2% after the cash market closed down by 0.2% yesterday.
DXY Just Above 100 The dollar index (DXY) sits just above the 100 mark, with the Australian dollar (AUD) leading the majors post-jobs data. The euro (EUR/USD) reclaimed 1.12, while the Chinese yuan (CNY) was supported.
The ASX 200 and Hang Seng were up, while the Nikkei 225 and Shanghai Composite were down. The mixed performance was due to a combination of factors, including the latest trade data from China, the PBoC's easing of cross-border funding, and the release of earnings from Netflix and Tesla.
US Equity Futures Softer
US equity futures were subdued amid pressure in Netflix and Tesla shares post-earnings.
FX
The dollar index (DXY) approached the 100.00 level to the downside amid pressure from several fronts, including the declines against the yuan after a much firmer-than-expected reference rate by the PBoC which also maintained its benchmark LPRs and eased cross-border funding parameters. EUR/USD mildly benefitted at the dollar's expense and after it reclaimed the 1.1200 handle. GBP/USD continued to nurse post-CPI losses which had briefly dragged the pair beneath 1.2900. USD/JPY trickled lower from the prior day's resistance after Japan posted its first trade surplus in 23 months. Antipodeans were firmer with AUD/USD further boosted by better-than-expected jobs data.
Fixed Income
10yr UST futures softened after the prior day's choppy performance as yields marginally edged higher overnight, while the attention turns to upcoming data releases including Jobless Claims, Philly Fed and Existing Home Sales. Bund futures languished near the prior day's lows with price action lacklustre despite the dovish rhetoric from ECB's Stournaras who stated that more tightening could hurt the economy and another 25bps hike would be enough. 10yr JGB futures traded rangebound but were kept afloat after mixed trade data and with the BoJ in the market for JPY 1.75tln of JGBs on top of its fixed-rate operations.
Commodities
Crude futures struggled for direction after yesterday's fluctuations and bearish inventories. China's June imports of Russian oil reached 2.65mln bpd which was a record for the month. Spot Gold edged higher with the precious metal underpinned by a weakening dollar. Copper futures were positive amid the latest Chinese support-related headlines.
Looking Ahead Highlights for the day include:
US IJC
Philly Fed
Existing Home Sales
EZ Consumer Confidence
CBRT & SARB Policy Announcements
Supply from Spain, France & US
Earnings from SAP, ABB, JNJ, Abbott & Phillip Morris
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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