6 things Australian traders will be talking about this morning

(Chris Hondros / Getty Images)

Good morning.

To the scoreboard:

  • Dow: 25,451.06 -76.01 (-0.30%)
  • S&P 500: 2,856.98 -4.84 (-0.17%)
  • AUD/USD: 0.7251 -0.0097 (-1.31%)
  • ASX200 SPI futures (September contracts): 6,240 (+19)

1. The Aussie dollar got hammered again overnight, after falling below US73 cents yesterday amid the ongoing political chaos in Canberra. As at 7am AEST it was trading around 0.7250, for an intra-day fall of over 1.3%.

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2. The leadership of the Liberal party is shaping up as a three-horse race between Julie Bishop, Peter Dutton and Scott Morrison. Before calling a spill, Malcolm Turnbull is awaiting the solicitor general’s report on Peter Dutton’s eligibility to sit in parliament, due at around 8:30am AEST. Follow all the live action here.

3. The AUD weakness came amid a broadly strong session for the US dollar, as members of the US Fed continued to indicate overnight that more interest rate hikes are necessary. The greenback rose against all the major pairs, and also posted more strong gains against a number of emerging market currencies.

4. In stocks, all three major US indices slumped as President Trump’s legal woes and escalating trade tensions continued to loom over Wall Street. But ASX futures are still optimistic and have marked the local index up by 19 points this morning.

5. Copper prices fell by 1% after the US and China imposed tariffs on another $US16 billion worth of each other’s exports, and their first round of trade talks in two months went nowhere. Oil prices were little-changed, while gold drifted lower amid strength in the USD.

6. And central bankers have descended on Jackson Hole, Wyoming for their annual two-day symposium. It comes a day after the Federal Reserve signalled in meeting minutes it would raise rates “soon” and will be followed by a closely-watched speech from Fed Chair Jerome Powell. Here’s a look at what to watch for.

Aside from the Liberal Party leadership spill, here’s a look at what else to watch for today.

  • Japanese inflation data and Kiwi trade numbers in the Asian timezone.
  • Core durable goods numbers are out in the US.
  • Fed Chairman Jerome Powell speaks in Jackson Hole.

Have a great weekend.

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