S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- The Australian Dollar remains strong despite China’s manufacturing PMI easing to 50.9 in July.
- The US Dollar faces pressure following Japan’s $58.97 billion yen-buying intervention and easing risk aversion.
- US-Iran diplomatic claims remain contested, keeping market sentiment cautious as Iranian forces stay on high alert.
AUD/USD depreciates after opening at a bullish gap, remaining in the positive territory and trading around 0.7030 during the Asian hours on Monday. The currency pair maintains its gains as the Australian Dollar (AUD) remained resilient, supported by economic developments in China, Australia’s major trading partner.
China’s RatingDog Manufacturing Purchasing Managers’ Index (PMI) eased to 50.9 in July from 51.7 in June, missing market expectations of 51.5; it continued to signal expansion in manufacturing activity.
Aussie inflation surprise seen as fuel-driven but still above RBA target
BNY’s Geoff Yu notes that RBA Assistant Governor Sarah Hunter characterised Australia’s latest CPI print as “a touch softer” than anticipated, with the downside surprise in headline inflation “mainly driven by lower fuel prices.” Hunter’s comments underscore that the moderation in price pressures is narrowly focused, rather than signalling a broader disinflation trend, and come against the backdrop of inflation still running above the RBA’s 2–3% target band.
The US Dollar (USD) struggles against major peers following official confirmation from Japan regarding joint currency interventions. Japanese authorities confirmed they carried out coordinated yen-buying operations with the United States, with Bank of Japan data pointing to spending of up to $58.97 billion on Thursday. Tokyo further signaled its readiness to intervene again if necessary, noting that close communication with US counterparts remains ongoing.
Pressure on the Greenback was further compounded by a broader easing of market risk aversion, spurred by potential diplomatic developments between the US and Iran. Sentiments shifted after reports indicated US President Donald Trump paused planned military strikes. In a post on Truth Social, President Trump stated that Iran and neighboring Middle Eastern nations had requested time to finalize a deal, a proposal that would lead to the complete reopening of the Strait of Hormuz and address Iran’s nuclear program.
However, financial markets remain cautious as Iranian officials swiftly contested these claims. Reporting via Iran’s Mehr news agency, officials characterized the assertion that Tehran sought a pause as “nothing but a new lie.” They emphasized that Iranian military forces remain on high alert and fully prepared for any eventuality, keeping geopolitical uncertainty elevated.
