Holding Wednesday's Closing Levels

Major pairs holding near Wednesday's closing levels after another day of positive risk sentiment.

• AUD/USD is a handful of pips higher supported by a rebound in commodities including iron ore, markets await a number of data releases including latest Q2 GDP partial print and CapEx figures, the data comes on the heels of yesterday's soft completed construction work reading. Market currently ignoring a jump in coronavirus cases in Victoria to 80 from 45 yesterday.
• NZD/USD has shed a few pips, the government will review Covid-19 alert levels on Friday, but Director-General of Health Bloomfield does not expect easing lockdown settings outside of Auckland to anything lower than level 3.
• USD/JPY is flat. Data showed services PPI rose 1.0% in July, in line with estimates but slightly slower than 1.4% in June. Japanese PM Suga confirmed that Japan will expand its COVID state of emergency to a further 8 prefectures. Meanwhile source reports in the local press have suggested that we should expect record budget requests across Japanese ministries & agencies for FY22/23.
• USD/CNH a few pips higher but within yesterday's range after finishing Wednesday back where it started having challenged the 6.48 handle. There were reports from the US that China-U.S. Financial Roundtable have scheduled a meeting to strengthen financial sector ties and bolster bilateral relations. China's SAFE released a statement late yesterday and said it would promote opening the capital account and facilitate cross-border trade/investment.
• Looking ahead ECB Monetary Policy Meeting Accounts and the secondary print of U.S GDP data is on the docket later on Thursday, but focus remains on the Fed's annual Jackson Hole Economic Symposium, with commentary from FOMC Chair Powell on Friday headlining that (now virtual) event.