Edit Content

Market Update 26/06/2024

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com

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 PairMid-market rate
NZD/USD0.6117
NZD/AUD0.9205
NZD/JPY97.68
NZD/CNY4.4586
NZD/EUR0.5711
NZD/GBP0.4822
NZD/HKD4.7772
NZD/SGD0.8288

Disclaimer:

The market update provided by Corporate Alliance FX (CAFX) is for reference only and does not constitute a bid, levy, offer or invitation to offer for the financial product, the basis for any contract or commitment, a recommendation for the purchase or sale of any investment instruments, financial, legal, tax, investment advice, investment advice or other opinions. It will not be legally liable for any consequences or losses caused by the information or content involved. 
Corporate Alliance Group Pty Ltd T/A Corporate Alliance FX (CAFX) (ABN 58 167 119 226, AFSL 523351) (i.e. CAFX), CAFX independently holds the Australian Financial Services licence no. 523351 (AFSL), so CAFX is regulated by the Australian Securities and Investment Commission (ASIC) and, and although ASIC is a strictly regulatory body, it does not endorse a specific financial product. ASIC’s regulation of CAFX applies to all services under the financial licence held by CAFX, including the issuance of foreign exchange settlement, foreign exchange payments, foreign exchange risk control, hedging, market making and providing financial advice.

Facebook
Twitter
LinkedIn