The Day Ahead
Today’s focus is squarely on Australia’s trade balance at 11:30 AEDT, where the deficit is expected to narrow sharply to -A$1.8 billion from -A$3.0 billion, driven by stronger commodity exports. A beat would give the AUD a tailwind and reinforce the ASX’s record-breaking momentum. Later, US initial jobless claims (forecast 199K) and preliminary productivity data (0.6% QoQ) will test the narrative of a resilient labour market — a productivity rebound would be a positive for the disinflation story.
Oil markets remain the wildcard. US Treasury Secretary Bessent says a Hormuz deal is “very close”, and any concrete progress would send crude lower, benefiting Australian importers but hitting energy stocks. Gold is riding high on geopolitical uncertainty and a softer USD, but watch for a safe-haven unwind if Middle East tensions ease. The ASX 200 hit an all-time high yesterday on rotation into financials and resources — the question today is whether the rally can hold, with house price weakness a growing risk for domestic-exposed sectors.
Currency Movements
| Pair | Price | 24hr Change | 7-Day Trend |
|---|---|---|---|
| AUD/USD | 0.7049 | +0.0024 (+0.34%) | |
| EUR/USD | 1.1546 | +0.0031 (+0.27%) | |
| GBP/USD | 1.3467 | +0.0027 (+0.20%) | |
| USD/JPY | 157.78 | +0.0020 (+0.00%) | |
| USD/CAD | 1.4063 | +0.0020 (+0.14%) | |
| USD/CHF | 0.8088 | -0.0009 (-0.11%) | |
| NZD/USD | 0.5870 | -0.0004 (-0.07%) |
Economic Calendar
Australia
| Time | Country | Event | Actual | Previous | Consensus | Forecast |
|---|---|---|---|---|---|---|
| 6 August | ||||||
| 11:30 | AU | Balance of Trade | A$-3.018B | A$-1.1B | A$-1.8B | |
| High impact * Revised value | ||||||
International
| Time | Country | Event | Actual | Previous | Consensus | Forecast |
|---|---|---|---|---|---|---|
| 6 August | ||||||
| 16:00 | DE | Factory Orders MoM | 1.9% | 0.3% | 0.4% | |
| 18:30 | GB | S&P Global Construction PMI | 38.4 | 40 | 40.9 | |
| 19:00 | EA | Retail Sales MoM | 0.2% | 0.1% | 0.1% | |
| 22:30 | US | Initial Jobless Claims | 197K | 202K | 199.0K | |
| 22:30 | US | Nonfarm Productivity QoQ Prel | 0.3% | 0.6% | 0.6% | |
| 22:30 | US | Unit Labour Costs QoQ Prel | 1.8% | 2.1% | 2.0% | |
| 7 August | ||||||
| 07:30 | US | Fed Musalem Speech | ||||
| 09:30 | JP | Household Spending MoM | 3.7% | -3.1% | -2.6% | |
| 09:30 | JP | Household Spending YoY | -0.4% | 1.0% | 1.5% | |
| High impact * Revised value | ||||||
Yesterday's Key Stories
Economic Releases
- US ADP employment change missed badly at 44K versus 70K consensus, raising doubts about Friday’s nonfarm payrolls — the labour market is cooling faster than expected.
- US ISM Services PMI came in at 54.1, slightly below the 54.5 consensus but still in expansion; the employment subindex likely softened.
- US crude oil inventories built by 2.479 million barrels versus a draw of -1.5 million expected, a bearish signal that weighed on oil despite geopolitical tensions.
- China’s RatingDog Services PMI slumped to 50.4 from 54.1, well below the 53.7 consensus, pointing to a sharp slowdown in the services sector and adding to growth concerns.
Macro & Policy
- The ASX 200 hit a record high of 9,227.8, driven by a rotation from AI-exposed markets into Australian financials and resources, softer inflation data, and optimism over a US-Iran peace deal.
- US Treasury Secretary Bessent stated a deal on the Strait of Hormuz is “very close”, sending oil prices lower and easing geopolitical risk premiums.
- The Albanese government is threatening federal legislation to force Queensland and the NT to adopt green data centre rules, including a ‘causer pays’ requirement for grid infrastructure.
- Home Affairs Minister Tony Burke is set to unveil migration cuts to hit budget targets, with possible measures including tougher family visa rules and a cap on backpackers.
- The ACCC launched an inquiry into mandating domestic roaming, which could force Telstra to share its network; Telstra shares fell nearly 2%.
- Glencore plans to apply for a secondary ASX listing by October, seeking exposure to Australian superannuation funds, after reporting a half-year profit of $4.4 billion.
Iron Ore & Steel
- Monadelphous won a $200 million contract from BHP to build a sixth car dumper at Port Hedland as part of the Port Debottlenecking Project 2, increasing iron ore export capacity.
- The ASX’s record high was supported by stronger copper and gold prices, with iron ore also contributing to the resources rally.
Gold & Precious Metals
- Pantoro reported outstanding infill drilling results at its Racetrack discovery within the Norseman project, including 4.94m at 349.14 g/t gold, confirming high-grade continuity and wider lode widths than the analogous Bullen deposit.
- Westgold Resources announced a $22 million expansion of its Cue processing hub in WA’s Murchison region, increasing capacity from 1.4 Mtpa to 1.7 Mtpa by FY28, with a 10-month payback period.
- The US government is among potential suitors for Andrew Forrest’s rare earth stake, highlighting strategic interest in critical minerals.
Oil & Gas
- Shell and PetroChina approved hundreds of millions of dollars to drill over 140 new wells for the Surat gas project in Queensland, supplying both QCLNG and the domestic market, amid uncertainty over the government’s proposed domestic gas reservation policy.
- The DomGas Alliance accused Woodside of exploiting WA’s domestic gas reservation scheme, supplying only 3.7% of Pluto project gas to the domestic market since 2017; the state government is renegotiating the Pluto agreement.
- Inpex has been charged by the NT EPA for under-reporting benzene and toluene emissions from its Ichthys LNG facility between 2019 and 2024, a breach of its environmental licence.
Today's Useless Fact
A signature is called a John Hancock because he signed the Declaration of Independence. Only 2 people signed the declaration of independence on July 4. The Last person signed 2 years later.