Markets steady as Fed stance supports U.S. dollar

Forex Market

Global markets delivered a mixed performance overnight as investors digested central bank developments and a resilient run in U.S. equities. A strong session on Wall Street ahead of the Juneteenth holiday saw the S&P 500 rise 1.1%, while the Nasdaq gained 1.9% and the Dow Jones added 0.1%. U.S. Treasury yields eased, with the 10-year yield falling to 4.45%, while crude oil prices edged lower. Asian markets were mixed, with gains in Japan and mainland China offset by weakness in Hong Kong and Australia. The ASX 200 fell 0.6%, weighed down by losses in the technology and materials sectors. Currency markets remained relatively contained, with AUD/USD trading in a narrow range around the 0.70 level.

European markets opened weaker and remained subdued through the session, while attention turned to the Bank of England’s policy decision. The Bank left its policy rate unchanged at 3.75% in a 7–2 vote, producing only a limited reaction across financial markets. Notes that the U.S. dollar strengthened broadly during the day, with major currencies including the euro, pound and New Zealand dollar moving lower against the greenback. U.S. economic data painted a mixed picture, with weekly jobless claims slightly above expectations but business activity indicators improving. Equity markets in the United States extended gains through the New York session, while the dollar continued to outperform most major currencies. The Australian dollar proved relatively resilient despite broader U.S. dollar strength, finishing the session near the middle of its recent trading range.

General Market

Wall Street

Dow Jones: +0.14% to 51,570
S&P 500: +1.08% to 7,500
Nasdaq: -0.06% to 30,319

Asia-Pacific

ASX 200: -1.06% to 8,811
Nikkei: -0.30% to 71,620
Shanghai Composite: -0.40% to 4,716

Europe

FTSE: -0.26% to 10,381
DAX: +0.37% to 25,026
CAC: +1.17% to 8,477

Headlines to Watch

United States

Existing home sales → health of the housing market
Philadelphia Fed survey → manufacturing momentum and business confidence
Labour market resilience remains central to Fed expectations

Europe

Consumer confidence → signal for household spending trends
Growth outlook versus inflation progress remains in focus
ECB policy expectations sensitive to incoming activity data

Asia-Pacific

Japan CPI → key for BOJ normalization expectations
Australian PMIs → early read on business conditions
New Zealand spending data → gauge of consumer demand

Global / Geopolitics

Middle East tensions → ongoing influence on energy markets
Oil price volatility → inflation and growth implications
Central bank policy divergence continues to drive FX markets
Global growth outlook remains sensitive to geopolitical developments and trade flows

Currency Pair	Mid-market Rate
AUD/USD	0.7013
AUD/NZD	1.2176
AUD/JPY	112.99
AUD/CNY	4.7525
AUD/EUR	0.6118
AUD/GBP	0.5310
AUD/HKD	5.4960

Markets steady as Fed stance supports U.S. dollar

Forex Market