Morning Report PDF (PDF 271KB)
Key themes:
- There was a risk off tone to end the week with key equity markets generally finishing the session lower.
- The US yield curve steepened with traders firming up bets on a September rate cut as the core PCE inflation print was as expected. Longer end yields ticked higher as investors grow increasing concerned over threats to the Fed's independence. The 2-year and 30-year yield spread is now running at its highest level since early 2022. Yields were generally higher across Europe.
- The US dollar was broadly unchanged while the Aussie continued to consolidate above 0.6500. This week's June quarter National Accounts is a risk event for the Aussie.
- Oil was lower while gold was higher on the back of ongoing geopolitical instability and concerns about the Fed's independence. Iron ore continues to trade above US$100.
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Westpac Banking Corporation published this content on September 01, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on August 31, 2025 at 22:14 UTC.
