The Australian bonds traded nearly flat Tuesday as investors await cues from the Federal Reserve’s Jackson Hole Economic Policy Symposium scheduled for this Friday in Wyoming.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, traded tad higher at 2.65 percent, the yield on 15-year note remained steady at 2.95 percent and the yield on short-term 2-year rose nearly 1 basis point to 1.82 percent by 03:10 GMT.
There are some expectations Federal Reserve Chair Janet Yellen could highlight the need to keep a watchful eye on risks to inflation goals and financial stability at the Jackson Hole meeting. However, the outlook is more or less consistent with a report from Reuters last week that detailed two unnamed sources' expectations that Draghi will not deliver a new stance on the state of monetary policy.
Also, the markets were jittery after the start of annual military exercises by South Korean and U.S. forces angered North Korea, which denounced the joint drills as a step toward nuclear war.
In terms of data, Australia’s ANZ Roy Morgan weekly consumer confidence fell to 109.2, down from prior 111.7. The data showed wage growth remaining near 2%, well below the levels of a few years ago and the job market to be in good shape with job growth in the past five months the best for an equivalent period in 12½ years. Also, consumer confidence is also tied to the fortunes of the Aussie dollar and the currency has backed away from US80 cents. Aussie consumers are fretting about slower wage growth, rising energy bills and higher healthcare costs.
Meanwhile, the S&P/ASX 200 index traded 0.49 percent higher at 5,712.5 by 03:10 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at -15.47 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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