Daily Market Update

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Sep 28, 2021 | Currency Market Analysis

Global Themes

Aussie outperforms as US debt ceiling takes focus

• US debt worries weigh on sentiment
• AUD the strongest
• Retail sales to be hit by lockdowns

Aussie best as USD falls

The Australian dollar was one of the strongest performers overnight as worries about the US debt ceiling weighed on the greenback.

US legislation to allow an expansion of US government debt failed to progress though the US Senate overnight ahead of a 30 September deadline.

The US Treasury can continue to borrow up until mid-October but the spectre of a US government shutdown has now become more likely.

AUD gains

The AUDUSD gained 0.4%.

The Aussie was higher in most other markets with the AUDEUR up 0.6% and the AUDJPY up 0.7%.

Local retail due

The local focus today is on the early read of Australian retail sales due at 11.30am AEST.

The market expects a 2.5% fall with the Australian economy still weighed down by the impact of lockdowns.

Later, testimony from US Federal Reserve chairman Jerome Powell will be closely watched.

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