6 things Australian traders will be talking about this morning

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Good morning.

To the scoreboard:

  • Dow: 25,299.92 +112.22 (+0.45%)
  • S&P500: 2,839.96 +18.03 (+0.64%)
  • AUD/USD: 0.7240 -0.0029 (-0.40%)
  • ASX SPI futures (September contracts): 6,239 (-7)

1. After a sharp sell-off slashed more than a fifth of its value, Turkey’s currency began to rebound. But structural issues behind the ailing economy and an escalating conflict between Washington and Ankara kept the lira near historic lows. Turkish President Recep Tayyip Erdogan said the country would boycott US electronic goods to retaliate against US sanctions.

2. Steadiness in the lira helped provide a boost for US stocks, as the S&P500 rose for the first time in five sessions. Amid a slightly more risk-off tone in global markets, benchmark US 10-year bond yields edged higher to 2.9%

3. But investors are still on edge with concerns the weakening lira could lead to economic turmoil in other emerging markets. Several currencies began to recover after weakening Monday. But the Indian rupee sold off for a second day, sliding past 70 per dollar to a record low.

4. The US dollar continued to march higher, gaining ground against the euro despite some solid economic data out of Germany. The pound briefly spiked after unemployment fell to the lowest level on record, but gave back its early gains.

5. Gold held steady just below $US1,200 an ounce, while copper prices — often viewed as a bellweather for the global economy — fell by around 1.7% and are back at recent lows. The Aussie dollar is now trading at its lowest level since January 2017 ahead of all-important wage data today.

6. And in cryptos, the market spiraled to fresh 2018 lows overnight. A broad sell-off has pressured the value of the digital currency market to below $US200 billion for the first time this year. After early selling, bitcoin steadied and is back above $US6,000 this morning.

Here’s a look at today’s busy economic calendar:

  • Australian Q2 wage price index — a key data release on the domestic calendar.
  • Westpac consumer sentiment survey for July.
  • Indonesia central bank interest rates announcement
  • UK July inflation data — a key event for currency traders
  • US retail sales and industrial production numbers
  • Wesfarmers, CSL, Seek and Fairfax Media report earnings

Have a great day.

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