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The Australian Dollar (AUD) continued to gains against its peers following the Reserve Bank of Australia’s (RBA) hawkish hold on Tuesday.
Markets were relatively calm due to the US Juneteenth public holiday, with US equity, bond, and most commodity markets were closed.
Out of the UK, May headline CPI fell to the target of 2.0%, mainly due to lower goods and energy prices. However, services CPI remained high at 5.7%, only slightly down from 5.9%. This figure is 40bps above the latest BoE staff estimate of 5.3%. The slow decline in services inflation is expected to support the MPC’s stance on maintaining higher rates for a longer period.
Economic data to watch out for.
• NZ – Q1. GDP SA q/q
• AU – Jun. Judo Bank Australia PMI Composite
• CN – 1- & 5-Year Loan Prime Rate
• EU – ECB Publishes Economic Bulletin
• UK – Bank of England Bank Rate
• US – May. Building Permits and May. Housing Permits
• US – Jun-15. Initial Jobless Claims
• US – Q1. Current Account Balance
• US – Jun. Philadelphia Fed Business Outlook
• EU – Jun. Consumer Confidence
• US – Fed’s Barkin Speaks on Economic Outlook
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6674 |
| AUD/NZD | 1.0867 |
| AUD/JPY | 105.40 |
| AUD/CNY | 4.8579 |
| AUD/EUR | 0.6208 |
| AUD/GBP | 0.5246 |
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