plainmoney — Market brief — Tuesday 11 Aug 2026 — 06:45 AEST
The straight answer
Wall Street closed slightly lower overnight, with the S&P 500 down 0.1%, as oil prices jumped on geopolitical concerns. For Australia, this means the ASX 200 is expected to open little changed, while the Aussie dollar gained 0.3% to 0.7056 against the US dollar.
What's moving markets
US equities saw a slight dip, with the S&P 500 closing at 7,753.1, down 0.1%. The Nasdaq also fell 0.3% to 26,605.4, and the Dow was down 0.1% to 53,976. The VIX, a measure of market volatility, rose 3.8% to 15.5, indicating a slight increase in investor caution.
Oil prices jumped significantly, with WTI crude up 5.2% to US$82.3 and Brent crude up 5.1% to US$87.8. Gold also saw a strong gain, up 2.5% to US$4,450.4. Bitcoin fell 1.3% to 90,873 AUD.
For Australia: The ASX 200 is expected to open little changed. Iron ore fell 0.9% to US$94.5, which typically puts pressure on the big miners and the Aussie dollar. However, the AUD/USD rose 0.3% to 0.7056, likely due to a narrowing AU-US 10-year bond spread. The AU 10-year bond yield is 4.92%, while the US 10-year is 4.70%, leaving a spread of +23 basis points.
World & geopolitics
Oil prices jumped significantly overnight, with Reuters reporting that "Oil prices jump, Wall Street under pressure with Hormuz, inflation in focus." This rise in crude prices is linked to "Hormuz uncertainty," per SMH.com.au, which refers to geopolitical tensions around the Strait of Hormuz, a critical shipping lane for global oil supplies. This matters for markets because any disruption to oil supply can drive up energy costs.
What it means for your money
Your super will see mixed signals, with global shares (VGS up 0.3%) performing better than Australian shares (VAS down 0.3%).
Your cost of living could be impacted by the jump in oil prices, which tends to push up petrol costs.
What to watch
The biggest upcoming catalyst is the US CPI (Consumer Price Index) data, due this Wednesday (12 Aug), 10:30pm AEST. This is the one that moves global markets and, by extension, your super and the AUD.
Possible outcomes: If the CPI print comes in hotter than expected, it could signal persistent inflation, leading to expectations of higher interest rates from the US Federal Reserve. This would likely push US bond yields higher and could strengthen the US dollar, potentially softening the AUD. If the print is softer, it could suggest inflation is cooling, potentially easing pressure on the Fed and leading to lower US yields and a weaker US dollar, which might support the AUD.
The live indicator to watch is the US 10-year bond yield. If it rises sharply after the CPI release, it suggests a hot inflation print. If it falls, it points to a softer reading.
Your call
The maths leans towards watching that US CPI print closely. If it comes in hot, expect global bond yields to rise, which could put upward pressure on Australian bond yields and, in turn, potentially impact future mortgage rates. If it's soft, that pressure might ease.
Today's moves
The numbers
What's coming up
- 12Aug22:30US CPI USImpact: high
- 20Aug11:30AU Labour Force AUImpact: high
What we're watching
RBA cash-rate path
US Fed path
Iron ore & China demand
China property & stimulus
AU housing cycle
Yen carry & BoJ
AI capex cycle
Global risk regime
Sources
- Reserve Bank of Australia — tier A, free
- Yahoo Finance (via yfinance) — tier B, free
- CoinGecko — tier A, free
- Google News (RSS) — tier B, free
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