ACY Securities

The EUR/USD pair has bounced back from its recent low of 1.0450, but it could struggle to find enough buyers as it approaches the 1.0530/1.0550 range. The US dollar remains an unattractive sell, and there is currently no compelling narrative in the eurozone to counter the exceptionalism story in the United States.

The Japanese yen has remained strong in overnight trading following a relatively turbulent session yesterday. The currency briefly climbed back above the 150.00 level and reached an intraday high of 150.16 against the US dollar before sharply dropping to an intraday low of 147.43.

The ongoing US Treasury sell-off persists, creating a sense that a significant development is on the horizon. Increased volatility across various markets and broader credit spreads strongly encourages a cautious approach.

Previously, Dr. Alchaar held the position of Minister of Economy and Trade in Syria. He also had significant roles at Fannie Mae and Johnson & Higgins in Washington D.C.

The impact of quarter-end flows has diminished, and the markets are now firmly set on a path favouring short bonds and a strong dollar.

Over the weekend, there was a positive development for the United States as Congress reached an agreement to temporarily fund the government for an additional 45 days, averting a looming shutdown.

In September, the New Zealand Dollar (NZD) has demonstrated remarkable strength among the G10 currencies, registering a gain of 1.1% against the US Dollar (USD). This performance aligns with other commodity currencies.

Looking beyond the dollar overshoot. Increased oil prices and rising real yields likely had a stronger impact on the dollar due to positive month-end flows. This could result in the dollar overshooting from what I consider to be fair levels.

US Treasury Yields eased from multi-year highs after the latest batch of economic data revealed some pockets of weakness in the economy. Pending Home Sales in America plunged 7.1% in August from a 0.5% rise in July.

The US dollar maintains its steady ascent, supported by various factors such as the adjustment of the long-term Federal Reserve funds rate, elevated oil prices, and uncertainties surrounding the trajectories of the European and Chinese economies.

The relentless ascent in US bond yields persists, yet there are emerging indications that this surge is beginning to exert a more pronounced influence on market risk sentiment. This development wasn't entirely unexpected; the only uncertainty lay in the timing.

Headline inflation accelerates to 5.2%; Still expect another RBA hike alongside elevated services inflation. In summary, Australia saw a 0.58% month-on-month increase in its Consumer Price Index (CPI) for August. The year-on-year inflation rate also accelerated, reaching 5.2% from the previous 4.9%.