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The AUD lost more than 50% against the USD fueled elevated US Treasury yields, as another bond auction witnessed softer demand. The AUD/USD trades at 0.6608 to start Thursday.
On the US front, data from the Chicago Board of Trade (CBOT) shows that investors had priced in 25 basis points of rate cuts in 2024, according to December’s 2024 fed funds future contract. Elsewhere regional Fed activity surveys index for May, which were mixed. The Richmond Fed Manufacturing Index improved to 0, from a -7 plunge in the last print.
On the local front, the monthly CPI rose to a five-month high of 3.6% YoY in April, up from 3.5% in March, with forecasts at 3.4% According to ANZ analysts, “forecast for a November start to cash rate cuts is unchanged, although risks remain tilted towards a later start.”
Economic data to watch out for.
• NZ – Apr. Building Permits m/m
• AU – Apr. Building Approvals m/m
• EU – Apr. Unemployment Rate
• EU – May. Consumer Confidence
• CA – Q1. Current Account Balance
• US – May-25. Initial Jobless Claims
• US – Q1. Personal Consumption and Apr and Retail Inventories m/m
• US – Apr. Pending Home Sales m/m
• UK – BOE’s Breeden speaks
• US – Fed’s Williams, Logan Speaks
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6611 |
| AUD/NZD | 1.0824 |
| AUD/JPY | 104.14 |
| AUD/CNY | 4.8079 |
| AUD/EUR | 0.6122 |
| AUD/GBP | 0.5211 |
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