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The AUD/USD traded in a .6636/.66885 range yesterday. Demand remains at 0.6630 and again at 0.6600, while offering interest rests above .6700.
Stock and bond markets declined as month-end approached. The yield on the US 10-year rose 7 basis points to 4.32%. US new home sales dropped 11.3% month-over-month in May, the sharpest decline in 20 months, indicating that high mortgage rates from restrictive monetary policy are impacting housing demand. The annualized seasonally adjusted rate of 619k brings it back to early 2019 levels. Mortgage rates are currently double what they were in 2021 before the Fed’s rapid monetary tightening. The median price of new homes fell 0.9% year-over-year to $417k. With the available supply of new home sales rising to 481k, the highest since 2008, further price declines seem likely in the coming months.
The main focus over the last 24 hours was the Australian CPI, which came in much higher than expected at 4%, driving strong demand for the AUD. The data initially caused a spike in the AUD
Local traders will be on the looking for headlines or action from Japan’s MoF as USD/JPY continues to push to uncomfortable levels.In the U.S., initial jobless claims will be released this evening. Markets believe the recent pick-up is due to some residual seasonality, that was also experienced this time last year. Caution should be taken against reading too much into today’s figure.
Economic data to watch out for.
• JP – May. Retails Sales
• NZ – Jun. ANZ Business Confidence
• AU – Jun. Consumer Inflation Expectations
• AU – May. Job Vacancies q/q
• CN – May. Industrial Profits y/y
• EU – M3 Money Supply y/y
• EU – Jun. Consumer Confidence
• UK – BOE Financial Stability Report
• AU – RBA’s Hause Speaks
• US – Jun-22. Initial Jobless Claims
• US – May. Durable Goods Orders
• US – Q1. Core PCE Price Index q/q
• US – Q1. GDP Annualised q/q
• US – Q1. Personal Consumption
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6641 |
| AUD/NZD | 1.0942 |
| AUD/JPY | 106.69 |
| AUD/CNY | 4.8481 |
| AUD/EUR | 0.6219 |
| AUD/GBP | 0.5265 |
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