Global overview
Financial markets remain gripped by worries about the Chinese economy with US equity markets lower again overnight. These ongoing concerns saw safe havens like the US dollar and Japanese yen outperform, while the Australian dollar and Chinese yuan remain pressured.
Aussie rally short-lived
We saw a short-lived rally in late Asian trading that pushed the Australian dollar and Chinese yuan higher yesterday, but the gains were only short lived.
US markets turned lower when New York trading started causing key markets to lose ground.
In addition to worries about China, US markets remain pressured by rising bond yields, with the benchmark ten-year bond yield climbing to 4.37% overnight – the highest level since the global financial crisis.
US gains, euro underperforms
The AUD/USD gave back early gains to end only 0.1% higher.
The USD/CNY was higher as the CNY weakened further. In other markets, the US dollar was mostly higher, with the EUR/USD seeing the largest losses, down 0.4%.
Global PMIs due
Global PMI numbers are due today and will provide the most up-to-date reading of the global economy.
The global manufacturing sector has been pressured by a slowdown in demand for manufactured goods which had added to the negativity around China.
However, the services sector has also recently started to buckle, driving broader concerns around the state of the global economy.
Aussie remains pressured
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 21 – 26 August
All times AEST
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
