Market Moves: US Treasury Yields, Australian Dollar, Oil Prices



  1. U.S. Treasury Yields Rise Amid Economic Outlook Assessment


U.S. Treasury yields saw an increase as investors evaluated the economic situation and anticipated upcoming data and the Federal Reserve's meeting. The 10-year Treasury yield rose over four basis points to 3.7855%, while the 2-year Treasury yield was up by more than four basis points to 4.7981%. The upcoming release of June's existing home sales data and weekly initial jobless claims is expected to provide insights into the state of the U.S. economy and influence the Fed's decisions in its upcoming policy meeting. While markets anticipate another interest rate hike, uncertainty remains for the rest of the year. The recent consumer inflation reading indicated easing price pressures, but it remains above the Fed's 2% target range. Investors will closely watch the central bank's guidance and Fed Chair Jerome Powell's remarks following the meeting.


  1. Australian Dollar Surges on Strong Jobs Data, Chinese Yuan Climbs


The Australian dollar saw a significant boost on Thursday as the country's employment data exceeded expectations for the second consecutive month in June. Net employment rose by 32,600, surpassing forecasts of a 15,000 increase. With the jobless rate near a 50-year low, there is potential for further rate hikes by the Reserve Bank of Australia. As a result, the Aussie spiked nearly 1% to $0.6840. Meanwhile, in Asia, China's central bank raised a parameter on cross-border corporate financing, making it easier for domestic firms to raise funds from overseas markets, supporting the yuan. The currency jumped more than 0.5% against the U.S. dollar. The broader currency market saw the U.S. dollar on the defensive, while the euro looked to the European Central Bank's policy meeting for rate outlook clarity.


  1. Oil Prices Steady Amid Lower U.S. Crude Stocks and Cautious Demand Outlook


Oil prices remained mostly unchanged as investors exercised caution due to a lower-than-expected drop in U.S. crude inventories and uncertain demand prospects. September Brent futures inched up 6 cents to $79.52 a barrel, while August U.S. West Texas Intermediate (WTI) crude rose 5 cents to $75.40 a barrel. The U.S. dollar was relatively stable, and concerns over China's slowing economy added to the unclear demand outlook. Analysts pointed out a mixed global demand picture in the coming weeks, with varying strength in gasoline, jet fuel, and diesel demand. Brent crude prices recently broke higher from the $72-$78 range in July, supported by Saudi output cuts and geopolitical risks.

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