Global Themes


Aussie lower as markets react to Barcelona, Washington worries

The AUD was lower overnight as financial markets fell sharply across the globe.

Growing worries about the ability of the Trump administration to implement its tax and infrastructure program pressured US sharemarkets with the Dow Jones index down 1.2% and the technology-focused Nasdaq dropping 2.1%.

The terrorist attack in Barcelona also hit market confidence.

Risk off pressures Aussie

The AUDUSD fell from yesterday’s highs to end down 0.5%.

Earlier, the AUD has been boosted by a strong jobs report. The Australian employment market grew by 28k new jobs in July versus expectations of 20k.

The AUD also gave up early gains versus the euro to fall 0.1%.

The AUDGBP fell 0.3% and AUDJPY dropped 1.1%. 

US inflation looms

There’s less emphasis on economic data today with German producer prices and Canadian inflation numbers due.

Next week, the focus will on US inflation numbers and the Jackson Hole symposium of central bankers.

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