|Day's range||2.0380 - 2.0640|
|52-week range||1.9430 - 3.2480|
U.S. government debt prices were lower on Friday morning, after comments from a Fed official hinted at a rate cut.
U.S. stocks fell on Wednesday and closed near their session lows after the Wall Street Journal reported that progress on a trade deal with China are stalled over restrictions on Huawei, citing people familiar with the talks.
The AUD/USD is likely to continue to key off the U.S. economic data over the near-term unless there is a big miss to the downside in the Employment Change report, or the Unemployment Rate surprisingly ticks higher.
Buying stocks when they are this expensive has historically led to lower returns, data compiled by Ned Davis Research shows.
Global shares were mixed Monday after China reported that its economy grew at the slowest pace in at least 26 years in the last quarter, leading investors to opt for caution despite Friday's record highs on Wall Street. Tariff hikes by President Donald Trump have battered Chinese and U.S. exporters, and Chinese leaders have increased spending and loosened controls on bank lending to keep growth within this year's range of 6% to 6.5%. The 6.2% annual rate of growth China reported for April-June was the lowest since China began reporting such data in 1993.
U.S. Treasury yields paused a sharp climb on Monday after the 10-year note posted its biggest weekly climb since April.
Shares were mixed in Asia on Monday, with gains in Chinese markets on hopes for fresh stimulus measures after the government reported that the economy grew at the slowest pace in a decade in the last quarter. Analysts said the 6.2% annual rate of growth reported for April-June suggests the trade war between the U.S. and China is hammering industries. The Shanghai Composite index gained 0.4% to 2,942.19 while Hong Kong's Hang Seng index gained 0.2% to 28,536.36.
The US yield curve, watched nervously by investors for signs of an impending recession, steepened in the past week by the most in almost three years, reflecting optimism that a rate cut by the Federal Reserve will keep the US economy growing. The measure ended the trading week at minus 1.6 basis points, from minus 19 basis points a week earlier, the largest change over five trading sessions since the period after Donald Trump was elected US president in 2016.
FT subscribers can click here to receive Market Forces every day by email. A week dominated by the Federal Reserve showing its easing colours is ending with global 10-year government bond yields loitering close to the top of their recent trading ranges. In the case of the 10-year Treasury note, its yield has climbed for the second week running, the type of sell-off not seen in three months.
US stocks capped the week with new records as investors remained upbeat on the prospect of fresh economic stimulus from central banks. The S&P 500 finished near session highs on Friday, rising 0.5 per ...
World shares were mostly higher on Friday after Wall Street ended overnight with the Dow Jones Industrial Average closing above 27,000 for the first time. The future for the S&P 500 also rose 0.3% to 3,011.30. This week's gains have been driven largely by expectations that the U.S. Federal Reserve is poised to cut its benchmark interest rate to help counter slowing growth.
Treasury yields hit a one-month high on Friday, on pace to post its biggest weekly gain since April after recent data showed hotter-than-expected inflation.
Consumers can expect to feel the effects of an expected Federal Reserve interest rate cut squarely in their savings account.
U.S. stocks ended higher Wednesday, pulling back slightly from record highs after remarks from Federal Reserve Chair Jerome Powell’s congressional testimony suggested the central bank remained open to a near-term rate cut.
A closely watched recession indicator may not be telling the entire story about the economy.
Shares rose Thursday in Asia, tracking gains on Wall Street after Federal Reserve Chairman Jerome Powell suggested the U.S. central bank is ready to cut interest rates for the first time in a decade. "Local equity markets are reveling in the best of both worlds this morning as local investors love nothing more than lower U.S. interest rates and a weaker U.S. dollar," Stephen Innes of Vanguard Markets said in a commentary. The market climbed early on after the Fed chairman told Congress in his semi-annual report that many Fed officials believe a weakening global economy and rising trade tensions have strengthened the case for a rate cut.
Market focus is largely attuned to Federal Reserve Chairman Jerome Powell's testimony before the Congress on Wednesday and Thursday.
FT subscribers can click here to receive Market Forces every day by email. Jay Powell delivers his semi-annual testimony to Congress tomorrow and Thursday as many keep calling for a weaker US dollar. The greenback’s swoon during June is fading from memory, with the reserve currency having gained further momentum following a resilient read on US job hiring last month.
Investor focus was largely attuned to the latest nonfarm payrolls report out of the U.S., which showed the economy added 224,000 jobs in June.
The link between moves in US stocks and Treasury yields has slipped to its lowest reading in more than a year, according to analysis by Credit Suisse. With equities rising and bond yields dropping in anticipation of lower rates, the correlation between stocks and rates fell more than 60 percentage points last week to -16 per cent. “The last time correlation was this negative was May ‘18 when a weaker than expected CPI led to a similar rates lower/equities higher dynamic.
Powell has the opportunity to reinforce gold trader expectations for a July 31 rate cut, or reduce demand for the precious metal by reiterating his previous comments about the Fed being “patient” and “data dependent”.
Even as record highs this week in the major U.S. stock indexes telegraph confidence on Wall Street, caution abounds in other U.S. markets, where falling bond yields and flailing small-cap stocks indicate investors are torn about where to place bets. Hints from Federal Reserve policymakers that the central bank will cut interest rates have buoyed both U.S. stocks and Treasuries. Such a conundrum was evident on Friday as stocks fell in response to stronger-than-expected U.S. payrolls data, which dampened expectations of a Fed rate cut.