Headlines:
- Dollar comes under pressure to start the new week
- Iran reaffirms that talks have not yet begun with the US
- China retail sales disappoint in July, industrial output slows while new home prices extend declines
- China stats bureau says July economic activity affected by extreme weather conditions, among other factors
- No major US data releases but this week will feature a big test on consumer health
Markets:
- AUD leads, USD lags on the day
- European indices mostly a little higher; S&P 500 futures up 0.1%
- WTI crude oil up 0.5% to $82.77
- Gold up 0.6% to $4,402
- US 10-year yields up 1 bps to 4.686%
- Bitcoin up 0.9% to $63,603
It was a quieter session as markets continue to assess the Middle East situation, while also weighing up the Fed outlook ahead of Jackson Hole next week.
There won’t be any major US economic data releases on the calendar this week, so traders will be left to their own devices for the most part in figuring things out.
The US-Iran stalemate continues but the dollar is seen moving lower on the day, helped by a couple of technical pushes. EUR/USD is up 0.2% to 1.1590 after briefly touching a high of 1.1615 earlier. That comes with AUD/USD also moving to a fresh two-month high of 0.7125, up 0.6% on the day. Meanwhile, USD/JPY stays more muted and is down just 0.1% to 159.20.
The overall risk mood is keeping steadier, with tech shares looking for a bounce to start the new week. European indices are lightly changed while S&P 500 futures are up 0.1%, with Nasdaq futures up 0.5%. This week, we will see major retailers in the US report earnings so that will be a checkpoint for the US consumer.
Elsewhere, the bond market is not seeing too much action with 10-year yields in the US down just 1 bps to 4.686% – still keeping at the highs for the most part.
In the commodities space, WTI crude oil is up 0.5% to $82.77 while gold is up 0.6% to $4,402 in keeping thereabouts with the same levels seen last week.
This article was written by Justin Low at investinglive.com.