Edit Content

Market Update 28/05/2024

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

Globally it was a quiet start for the week with US & UK markets closed for public holidays. In Europe, ECB Governing Council member Villeroy proposed that the central bank might lower interest rates in both June & July, despite some other ECB members being hesitant about consecutive cuts. At the same time, ECB Chief Economist Lane gave a strong signal that a rate cut is expected next week but emphasized that policy will need to stay restrictive throughout 2024. European equities went higher, the yield on the 10-year bund fell 3.7bps to 2.55%. Even a small hint of additional dovishness from the ECP puts pressure on the EUR, particularly against the GBP, bringing it to its lowest level since August 2023.

NZD outperformed against the USD overnight, reaching 0.6153, 1 pip higher than the post-RBNZ level seen last week. The markets are waiting for US Personal Consumption Expenditure (PCE) data to be released later this week. The upcoming National Budget on Thursday would not have a significant impact on the NZD, with no major local economic data expected until GDP figures in mid-June ad CPI data in July, the NZD’s movement for the rest of this week will likely be influenced by the USD and comments from various Federal Reserve officials before their quiet period ahead of 13th June Fed meeting. The current NZDUSD support level sits at 0.6100 & 0.6084 and resistance around 0.6170 & 0.6210. If it breaks through 0.6210 then the next target level would be 0.6400.

Along with NZD, the AUD outperformed against the USD too, traded to 0.6660. NZDAUD is trading tightly around 0.9240, with resistance at 0.9280 and support at 0.9200. The long-term range might remain between 0.9000 & 0.9400.

NZDJPY hit a new 17-year high just above 96.50. Bank of Japan (BoJ) Governor Kazuo Ueda and his deputy suggested that there is room to gradually raise interest rates now that Japan has moved away from a 0% inflation norm. Deputy Governor Shinichi Uchida mentioned in a speech at the BOJ’s annual international conference that, while achieving a stable 2% inflation rate remains a major challenge, they are nearing the end of their efforts to overcome deflation.

NZDEUR traded to a new 2-month high of 0.5670. After bouncing off the 0.5525 support level in early May, it is now testing resistance at 0.5700 influenced by dovish signals from the ECB. If it breaks through this level, the next target would be 0.5750.

It’s going to be bit quiet on the data front today, with Australian Retail Sales will be the main focus at 1:30pm NZT. Overnight, US Consumer Confidence is expected to show a slight decline but isn’t likely to impact the market significantly. The market’s attention is expected to be more on the upcoming inflation reports later in the week from Australia, Europe & Japan.

Here are the latest mid-market rates:

Currency PairMid-market rate


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.