EBC Markets Briefing | Aussie dollar gained after hotter-than-expected CPI report

The Australian dollar rose ‌on Thursday though the latest PCE price index lightly lifted expectations of a Fed rate hike, ahead of the Jackson Hole central bankers' symposium due to begin later in the day.

Iran and Oman have already reached an agreement on their respective shares of the vital economic artery, but the Revolutionary Guard said the strait would remain closed if the US does not accept Iran's conditions.

Thus far, the United States has refrained from implementing substantial secondary sanctions on foreign entities, most notably Chinese financial institutions suspected of supporting Iran's petroleum commerce.

China's industrial profits growth in July slowed to its weakest pace this year, expanding 11.2% from a year earlier. Corporate profitability has seen a notable turnaround this year.

Australia's latest July data shows consumer prices and core inflation both jumped past forecasts, driven largely by surging fuel costs and increasing the likelihood of monetary tightening.

Markets are quickly adjusting to the likelihood of a fourth RBA rate hike this year. September hike odds doubled to 38%, and a move by February next year is now fully priced in.

EBC Financial Group analyst says the Aussie dollar looked robust. A shallow pullback to retest the 0.71-0.7070 broken resistance zone as new structural support would offer a premium risk-reward entry for late-joining bulls.

Asset Recap

As of market close on 26 August, among EBC major products, ONEOK shares led gains. The most likely driver appears to be follow-through from the stronger Q2 results and higher 2026 guidance announced earlier this month.

A newly discussed employer-benefits survey showed some companies are becoming more selective on GLP-1 coverage for weight management, which bodes ill for Eli Lilly and Co.

Steady economic data is prompting some investors to take profits on gold and silver, particularly as the Fed continues its rate-hiking cycle to curb inflationary pressures.

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EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.