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AUD

US economy continues to pick up steam, Canadian rate hike. 

USD attracts buyers in overnight trading.
The USD gained in strength overnight, with Fed member Evans a notorious dove in terms of rate hikes, writing in the Journal that he is on board with further hikes this year. Also, we had strong data overnight from the US, the wholesale cost of goods and services rose in June at the highest yearly rate in almost seven years, reflecting broad inflationary pressures in a fast-growing U.S. economy.
The Bank of Canada hiked rates from 1.25% to 1.5% as expected, but so far this hasn’t translated into a broad move in FX markets. 

AUD drops again overnight versus the Greenback, commodities fall. 
Commodities have taken a hit overnight, gold down over a percent and WTI crude oil fell 4.66%, which have also weighed on the AUD. 

This has all translated into AUD weakness, against the US dollar it dropped nearly 50 points, again dropping below the 0.74 level, and it also fell against the Euro 0.3%.

Coming Up…
We have inflation figures from the main Eurozone economies, France and Germany, both expected at 0.1%, also Euro industrial production figures which is predicted to show a rise after last times -0.9% drop. 

Also, out of the US we have CPI and unemployment figures which markets are watching closely for guidance over the next rate hike timing. At the moment the market is saying there is a 82.3% chance of this occurring in September. 


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