Overnight:
US Q2 GDP comes in at 6.5%, exp 8.5%, prev 6.4%
US weekly jobless claims rise to 400K, exp: 380K, prev: 424K
Federal Open Market Committee meeting (FOMC).
The Fed leaves monetary policy unchanged but made the progress towards goals laid out to taper.
The Fed is committed, keeping, the level of bond buying at $120bn a month. The Fed Chair Jerome Powell did acknowledge that the economy had progressed towards the goals need to look at tapering but there was still some way to go. The decision to leave the current rate of 0.25% unchanged was unanimous.
The dollar index, DXY, which measures the dollar against a basket of six currencies, was 0.44% lower, the lowest since 28 June 2021.
RBA:
The Australian’s Central bank is likely to withdraw on its plan to taper the bond-buying program, reflecting the concerns around the Sydney lockdown and the implication this will have on next’s RBA meeting. Sydney’s monthlong lockdown has been extended till the end of August, as cases have gone up daily, this will put a dent in the GDP which is likely to contract in Q3.
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