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Currency Market Analysis

Jul 10, 2020 | Currency Market Analysis

Global Themes

Aussie falls with risk sentiment

• US reports a record 60,000 new COVID-19 cases
• AUD continues to track global equities and risk sentiment

Aussie falls with risk sentiment

The Aussie continued its trend of tracking the global equity markets overnight, losing 0.3%. The S&P 500 and Dow dropped more than 0.5% in Thursday’s trading as concerns in the U.S. grow about a second round of business shutdowns to halt a surge in coronavirus cases.

The US reported over 60,000 new COVID-19 infections on Wednesday which is the highest number by any country since the pandemic began. In addition, Florida and Texas had a record one-day increase in deaths.

Looking ahead

Investors will begin to turn their focus to the U.S. second quarter earnings season over the next few weeks. Large Corporations are expected to report steep declines in their earnings and the actual results will be reflected in share prices. If the AUD is to continue tracking global risk sentiment, the outcomes of this earnings season will be critical.

Today...

Today, the domestic focus will be on new COVID-19 case numbers in Australia and whether the recent surge in Victoria can be contained to that state.

The major data release is the U.S. Producer Price Index that will be released at 10.30pm.


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