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Another subdued session for currencies although the benign conditions encouraging global equities to gain ground with the S&P500 topping 5,600 for the first time. Treasuries stable whilst AUD/USD holding a tight 0.6733 to 0.6752 range.
A quiet session into the London lunch with the greenback a touch weaker. AUD/USD traded back above 0.6740 and NZD/USD 10pts above 0.6066 lows. EUR/USD made highs at 1.0829, GBP/USD at 1.2812, and USD/JPY dipped back below 161.50 having reached 161.61
No data of note across the NY morning with movement coming in GBP/USD after BOE commentary was considered less dovish than expected with the question over rate rises being “when not if” but the absence of a timeline helped the pair up around 40 points to highs of 1.2847. Elsewhere and AUD/USD ticked up to 0.6752 while USD/CAD fell to 1.3609 lows while USD/JPY ticked up to 161.685.
Day Ahead
US CPI for June will be in focus this coming session after a favourable reading in May. Consensus expects the core MoM figure to come in at +0.2% MoM. Should this occur it is likely to be supportive of continued disinflation and be received favourably by markets.Currencies remaining in a holding pattern for now with further offering in AUD/USD from 0.6750 and bids being raised to the 0.6650/80 area.
Economic data to watch out for.
• NZ – Jun. Food Prices MoM
• AU – Jul. Consumer Inflation Expectations
• Germany – Jun. CPI EU Harmonized m/m
• UK – May. Index of Services m/m
• UK – May. Industrial Production m/m and May. Manufacturing Production m/m
• UK – May. Monthly GDP m/m
• UK – May. Trade Balance
• US – Jun. CPI
• US – Initial Jobless Claims
• US – Fed’s Bostic and Musalem Speak
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6750 |
| AUD/NZD | 1.1093 |
| AUD/JPY | 109.07 |
| AUD/CNY | 4.9218 |
| AUD/EUR | 0.6230 |
| AUD/GBP | 0.5253 |
AUD/USD 24 Hour
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