Greenback flat, equities rise again on Wednesday

Nothing new is happening – the US dollar continues to be under pressure, although with a little pause on Wednesday, while US equity markets are going vertical. 

Earlier in the session, the Australian GDP for the second quarter failed to meet expectations, and dropped to -.7% quarter-on-quarter. The yearly change declined to -6.3%. Both numbers came out worse than forecasts. And since Australia is undergoing another heavy lockdown, the third quarter numbers might be even worse. 

On Tuesday, Fed Governor Lael Brainard said late Tuesday the central bank would need to provide more stimulus to fulfill its promise of stronger job growth and higher inflation. It looks like vertical movement in the stock markets, and 10% monthly gain isn’t enough, and more is needed. Ok. 

From other news, the greenback has been trading flat after it’s yesterday’s big reversal and the EURUSD pair was seen near 1.19 during the EU session. 

Later in the day, the US ADP employment report is due for August, and traders expect huge job gains again. Another fuel for the stock market rally. 

Moreover, factory orders will be released and investors will also analyze the Fed’s beige book.