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Currency Market Analysis

Sep 13, 2021 | Currency Market Analysis

Global Themes

US shares fall for fourth day; AUD hit

• US shares end week lower
• AUD pressured
• RBA speech, local jobs in focus

US shares hit by post-earnings lull

Global sharemarkets continued to struggle at the end of last week with investors more cautious.

Sharemarkets have recently paused after a bumper second-quarter earnings season pushed US markets to all-time highs.

Worries about a potential peak in earnings have weighed while concerns also remain about the timing of the Federal Reserve’s decision to wind back stimulus.

The Dow Jones fell 0.8% while the technology-focused Nasdaq also lost 0.8%.

AUD hit

The AUD fell with most risk-sensitive currencies weaker.

The AUDUSD lost 0.3%.

The Aussie was weaker in most other markets with the AUDEUR down 0.2% while the AUDJPY fell 0.1%.

RBA speech key

In a big week for data, the local highlight is tomorrow’s speech from Reserve Bank of Australia governor Philip Lowe.

Lowe’s Anika Foundation speech has historically provided key detail around the RBA’s thinking.

Australian employment numbers are released on Thursday.

Otherwise, US inflation, on Tuesday night, and Chinese production data, due Wednesday, are the major international releases.

Across the Tasman, a stronger number from June-quarter growth, due Thursday, could see expectations grow for rate hikes from the Reserve Bank of New Zealand.

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