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AUDUSD has risen above 0.6650. It has continued to strength overnight, buoyed by the positive response to a more hawkish RBA stance, with New Zealand dollar also benefiting from this momentum. Meanwhile, the NZDAUD pair is slightly lower at 0.9230.
US equities surged overnight, supported by strong performance in the tech sector. A weaker than expected US Retail Sales report supported US Treasuries with the US 10-year yield dropping 6 bps to 4.22% and weakening the USD, reversing its earlier gains. Lower US bond yields are not benefiting the USD, political issues in Europe are also developing and adding to the uncertainty. US Retail Sales data for May was weaker than expected, increasing by just 0.1% m/m compared to the anticipated 0.3%. Additionally, April’s data was revised downward from flat to a -0.2% decline. Control group sales rose by 0.4% in May, slightly below the expected 0.5%. Out of 13 retail sales categories, five showed declines, while spending increased in the other eight categories. Notably, gasoline spending fell by 2.2%, furniture and home furnishing sales dropped by 1.1%, and building materials and garden equipment sales decreased by 0.8%. This suggests that consumers are adjusting their spending due to tight monetary conditions.
Economic data to watch out for.
• NZ – 1Q. BoP Current Account Balance NZD
• JP – BOJ Minutes of April Meeting
• JP – May. Trade Balance
• UK – May. CPI y/y
• US – Jun. NAHB Housing Market Index
• CA – Bank of Canada Releases Summary of Deliberations
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6661 |
| AUD/NZD | 1.0852 |
| AUD/JPY | 105.16 |
| AUD/CNY | 4.8456 |
| AUD/EUR | 0.6203 |
| AUD/GBP | 0.5243 |
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