Posted at 13 August 2025 / Categories Market Roundups
Market Roundup
• Japan Reuters Tankan Index (Aug) 9, 7 previous
• Japan PPI (MoM) (Jul) 0.2%, 0.2%forecast,-0.1% previous
• Japan PPI (YoY) (Jul) 2.6%,2.5% forecast, -0.1% previous
•Australia Home Loans (MoM) 2.4% -1.8% previous
•Australia Invest Housing Finance (MoM) 1.4%,0.0% previous
•Australia Wage Price Index (QoQ) (Q2) 0.8%,0.8% forecast, 0.9% previous
•Australia Wage Price Index (YoY) (Q2) 3.4%,3.3% forecast, 3.4% previous
Looking Ahead Economic Data (GMT)
•09:00 Greek Unemployment Rate (Jun) 7.9% previous
•09:30 German 10-Year Bund Auction 2.620% previous
Looking Ahead Events and Other Releases(GMT)
• No Events Ahead
Currency Forecast
EUR/USD : The euro strengthened on Wednesday as soft U.S. economic data weighed on the dollar and boosted expectations for Federal Reserve rate cuts. Data on Tuesday showed the U.S. Consumer Price Index rose 0.2% in July after a 0.3% increase in June, bringing the annual rate to 2.7%. Investor confidence in the dollar was further dented after the White House said President Donald Trump was weighing legal action against Fed Chair Jerome Powell over his handling of renovations at the central bank's headquarters. Markets now price in roughly a 90% probability of a Fed rate cut in September, with at least one more reduction anticipated by year-end. Immediate resistance can be seen at 1.1811(23.6%fib ), an upside break can trigger rise towards 1.1783(23.6%fib).On the downside, immediate support is seen at 1.1625 (SMA 20), a break below could take the pair towards 1.1567(38.2%fib ).
GBP/USD: The British pound edged higher on Wednesday as the dollar weakened following data showing U.S. consumer prices rose moderately in July, keeping alive expectations for a Federal Reserve rate cut next month. According to the Labor Department, the consumer price index increased 0.2% in July after a 0.3% gain in June, while the annual rate held steady at 2.7%.Currency markets had been range-bound ahead of the release, as investors anticipated that a moderate inflation reading could reinforce bets on a September rate reduction expectations that have strengthened since last week’s soft U.S. payrolls report. Immediate resistance can be seen at 1.3620(38.2%fib), an upside break can trigger rise towards 1.3664(Higher BB).On the downside, immediate support is seen at 1.3460(50%fib), a break below could take the pair towards 1.3396(SMA20).
AUD/USD: The Australian dollar edged lower on Wednesday as investors digested softer-than-expected U.S. CPI data. U.S. consumer prices rose only modestly in July, in line with forecasts, with the impact of President Trump’s broad tariffs on goods prices remaining limited so far.Domestically, Australia’s annual wage growth held steady in Q2 after more than a year of declines, supported mainly by public sector gains. The Australian Bureau of Statistics reported that the wage price index rose 0.8% in the quarter, matching market expectations — a sign of solid real earnings growth that could help underpin consumer spending.Market focus now turns to Thursday’s data releases, including Australia’s July employment report, U.S. weekly jobless claims, and the U.S. July manufacturing PPI, which are expected to guide near-term currency moves. Immediate resistance can be seen at 0.6611(23.6%fib), an upside break can trigger rise towards 0.6628(Higher BB).On the downside, immediate support is seen at 0.6518(SMA 20), a break below could take the pair towards 0.6482(Lower BB).
USD/JPY: The U.S. dollar eased on Wednesday after softer-than-expected U.S. inflation data reinforced expectations for a Federal Reserve rate cut next month. Data from the U.S. Labor Department showed the consumer price index rose 2.7% in the 12 months through July, just below the 2.8% forecast by economists. The report added to market conviction that the Fed may move to lower borrowing costs in September.Investors now turn their focus to upcoming U.S. data releases later this week, including the Producer Price Index, weekly jobless claims, and retail sales, for further clues on the economic outlook and policy trajectory.In Japan, producer price inflation in July came in slightly above expectations but slowed to its weakest pace in 11 months as higher overseas tariffs weighed on domestic producers. The PPI rose 2.6% year-on-year, topping forecasts of 2.5% but easing from June’s 2.9% gain, according to government figures released Wednesday. Immediate resistance can be seen at 148.26(38.2%fib) an upside break can trigger rise towards 150.00(Psychological level) .On the downside, immediate support is seen at 146.12(50%fib) a break below could take the pair towards 145.40(Lower BB).
Equities Recap
Asian equities rose on Wednesday as softer U.S. inflation data bolstered hopes of a Federal Reserve rate cut in September, lifting risk appetite among investors.
China A50 was up 0.47% , Hang Seng was up 2.52 Japan’s Nikkei 225 was up 1.48%
Commodities Recap
Gold rose on Wednesday as a weaker dollar and soft U.S. inflation data boosted bets on a September Fed rate cut, with markets also eyeing upcoming U.S.-Russia talks on the Ukraine war.
Spot gold was up 0.3% at $3,355.30 per ounce, as of 0651 GMT. U.S. gold futures for December delivery gained 0.2% to $3,405.50.
Oil prices were steady on Wednesday as investors awaited U.S. inventory data and monitored anticipation over an upcoming meeting between U.S. President Donald Trump and Russian President Vladimir Putin.
Brent crude futures dipped 3 cents, or 0.05%, to $66.09 a barrel at 0711 GMT, while U.S. West Texas Intermediate crude futures edged down 8 cents, or 0.13%, at $63.09. Both contracts settled lower on Tuesday.