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Monday’s session saw a recovery in the AUD and found support at the 0.6640 against the greenback. The highlight will be Australian inflation data eyed to shape ensuing RBA decisions.
The week started quietly with mixed results on Wall Street. The yield on the US 10-year fell by 1bp to 4.25%, and the USD declined overall due to a decline in the DXY and a rebound in the euro. Chicago Fed President Austan Goolsbee expressed that the Fed might consider cutting rates if inflation continues to ease, as suggested by the promising May CPI report. He also emphasized that Fed decisions are independent of politics or elections, indicating that the upcoming US presidential election wouldn’t influence their actions. On a more cautious note, San Francisco Fed President Mary Daly mentioned that pre-emptive measures are only taken if there are visible risks, but currently the labor market appears strong.
Economic data to watch out for.
• AU – Jun. Westpac Consumer Conf. SA m/m
• CN – Jun. Bloomberg Economic Survey
• CA – May. CPI y/y
• US – May. Chicago Fed Nat Activity Index
• US – Jun. Conf. Board Consumer Confidence
• US – Jun. Richmond Fed Manufact. Index
• US – Fed’s Cook, Bowman Speaks
Mid market rates.
Currency Pair | Mid-market rate |
AUD/USD | 0.6656 |
AUD/NZD | 1.0871 |
AUD/JPY | 106.27 |
AUD/CNY | 4.8481 |
AUD/EUR | 0.6200 |
AUD/GBP | 0.5246 |
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