Daily Market Commentary 23rd August 2023

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The BRICS Summit kicked off in South Africa yesterday and there were high expectations, as nations line up for membership. The BRICS group will announce expansion and prospects, but currency markets keenly await any news on the new ‘reserve settlement currency’. US equity markets turned negative overnight, following further S&P Credit Ratings agency cuts to multiple US Banks credit ratings. US Bond Yields remain at elevated levels, not seen since 2007, while European bonds are also on the rise. US Existing Home Sales contracted 2%, while the Richmond Fed Manufacturing Index, remains in negative territory. The EUR fell back to 1.0840, while the GBP regained 1.2700.

Commodity currencies stabilised overnight, with the NZD bouncing off 0.5900, while the AUD looks to consolidate above 0.6400. Local markets will await important flash PMI data from Asia, followed by Europe and the USA. All eyes are on BRICS and the Jackson Hole Symposium open in Wyoming, USA.

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