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Tech stocks rose, boosting US equities. The USD strengthened, and bond yields remained mostly steady, with the US 10-year yield down 0.4bps to 4.23%. US consumer confidence declined in June, showing mixed results. The overall confidence dropped by 0.9 points to 100.4. Consumers assessment of the current situation held up, with the present situation index rising by 0.7 points. However, the outlook on expectations weakened, with the expectations index falling by 1.9 points. FOMC member Bowman delivered a speech overnight at the policy exchange event in London, noting several potential risks for inflation to increase. Her colleague, Lisa Cook, mentioned that it will eventually be appropriate to reduce rates, and she anticipates gradual improvement in inflation this year.
NZDUSD slipped towards 0.61 overnight but is now back near 0.6120. The US dollar is slightly higher, but FX volatility remains low. We’ll look to upcoming US data, including durable goods, initial jobless claims, GDP, PCE inflation, spending and income, and University of Michigan consumer sentiment, to drive the next move for the NZD.
NZDAUD is steady around 0.9200. The Kiwi remained stable during a quiet overnight session and is expected to stay calm ahead of the Australian monthly CPI data, due at 1.30pm NZT. Although not directly related to NZ, this data will be important for the AUD and NZD/AUD. The pair has paused its decline but needs a catalyst to continue falling or to reverse direction.
The JPY move has pushed NZDJPY to its highest level since 1986, reaching 97.90. This marks a significant milestone since the currency pair was first floated on March 4, 1985, when NZDJPY was above 113.
Today, the focus is on Australia’s monthly CPI data at 1:30pm NZT, which is closely watched given the RBA’s cautious stance on unexpected increases in inflation. Other than that, there are only less impactful economic releases scheduled. But it worth noting the upcoming first US presidential debate on Thursday which is around at 2:00 am NZT on Friday, that can potentially impact markets. This is the earliest presidential debate in American history.
Here are the latest mid-market rates:
| Currency Pair | Mid-market rate |
| NZD/USD | 0.6117 |
| NZD/AUD | 0.9205 |
| NZD/JPY | 97.68 |
| NZD/CNY | 4.4586 |
| NZD/EUR | 0.5711 |
| NZD/GBP | 0.4822 |
| NZD/HKD | 4.7772 |
| NZD/SGD | 0.8288 |
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