AUD climbs in RBA rate decision; Apartment in USD during holidays

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Kiwi Jumps – ASB Bank sees RBNZ rate hike at the end of 2021

Summary: New Zealand Kiwi grew wings and flew in early Sydney trade after ASB Bank (Auckland Savings Bank) predict the RBNZ will increase cash rate in November 2021. NZD / USD currently trading at 0.7058 of his 0.7017 New York closed. the Australian dollar climbed to 0.7545 of 0.7530 before today’s RBA Interest Rate Meeting and Decision (2:30 p.m. Sydney). While waiting for the US dollar has changed little compared to his others Rivals as the The United States celebrated their Independence Day vacation. Despite European optimism and Eurozone services and composite PMIs, the EUR / USD pair has changed little, exchanging to 1.1866 of his New York close on 1.1863. Sterling bordered up to 1.3857 from 1.3845 on an improvement of UK Services PMI in June (at 62.4 vs estimates of 61.7). British Prime Minister Boris Johnson partial lifting restrictions as the country prepared for its scheduled reopening on July 19. Against the Asian and emerging market currencies, the Dollar was mixed up. USD / SGD open to 1.3450 of 1.3460 yesterday while the USD / THB pair installed at 32.10 (32.15 yesterday).

Wall Street stocks finished slightly higher in limited trade while US Treasury Markets We are closed.
the DOW closed to 34 825 (34 790) while the S&P 500 was the last to 4.353 (4.350 yesterday). Commodity prices increased due to a generally risk appetite Gold and silver open the way.
Data released yesterday saw Retail sales in Australia in May go up to 0.4%, beat the forecast at 0.1%. Australian building approvals fell by -7.1% against the expectations of -5.0% decrease. Eurozone services PMI in June went to 58.3 to 55.2 in May. UK Services exceeds PMI forecasts, rising to 62.4 of 61.7. the Eurozone Sentix investor confidence index has slipped at 29.8, faded away estimates at 30.2.

  • NZD / USD – was the biggest driver of the morning trade, amounting to 0.7058 versus 0.7017. The Kiwi had a relatively narrow range off with a range of 0.7010 to 0.7034. ASB Bank, one of New Zealand’s Big Four, predicted the RBNZ would hike rates in November. A few minutes ago, New Zealand’s NZIER Quarterly Business Confidence Index fell from -13 in the previous quarter to 7.
  • AUD / USD – Ahead of the RBA’s interest rate policy meeting and the rate announcement, the Aussie climbed 25 pips to 0.7545 from its NY close at 0.7530. RBA Governor Philip Lowe will hold a press conference after the meeting. While the RBA is not expected to change its overnight rate, traders will take a close look at forward guidance.
  • GBP / USD – The British pound has risen slightly since its New York close at 1.3843 to 1.3855 at the start of Asian trading. UK services PMIs beat expectations as UK Prime Minister Boris Johnson remained optimistic despite the latest delta variant of Covid 19 infections rising in the country.
  • EUR / USD – The split currency changed little at the start of Asia at 1.1865 (1.1863) despite European PMIs (Italian, French, Spanish) and Eurozone services mostly bullish. Only the German services PMI was lower than expected (57.5 vs. 58.1). Today sees more German economic data releases.

On the lookout: The RBA’s interest rate policy meeting is the main risky event of the day. Australia’s central bank is not expected to change its overnight rate. RBA Governor Philip Lowe will hold a press conference following the meeting and the rate decision. Lowe’s speech will be closely watched for any future direction.
The American markets are back from their long Independence Day weekend.
Data released today kicked off with Japanese average cash earnings, May household spending (m / mf / c at -3.7% from 0.1%, y / yf / c 10.9% from 13.0% – ACY Finlogix). European economic data follows and it starts with German factory orders for May (f / c will drop to 1% from -0.2%), German construction PMI for June (the old one was 44.5 , no forecast), the French construction PMI for June (old was 51.1, no forecasts), euro zone construction PMI for June (previous one was 50.3, no forecasts ). The UK publishes its construction PMI for June (f / c 63.8 vs. 64.2 – ACY Finlogix). Eurozone retail sales for May follow (m / mf / c 4.4% from -3.1%, y / yf / c 8.2% from 23.9% – Finlogix). Germany publishes its ZEW economic sentiment index for July (f / c 75.2 vs. 79.8). The ZEW Eurozone Economic Sentiment Index for July follows (previous was 81.3, no forecast). Finally, the United States publishes its Markit Final Services PMI for June (f / c 64.8 vs. 70.4) and ISM Non-Manufacturing PMI for June (f / c 6.3.5 vs. 64.0 – Finlogix).

Commercial perspective: A busy start to the week with the release of economic data on construction and non-manufacturing PMIs as well as the RBA interest rate policy meeting. Ahead of the release of the FOMC meeting minutes on Thursday, we can expect more consolidation. That said, the greenback could run out of steam as the markets go into risk mode. This would favor risky currencies like the Aussie, the Kiwi and the Canadian dollar.

  • AUD / USD – The Australian dollar surged higher after falling to 0.7444 on Friday following the release of the US wages report. Overnight, the Aussie traded in a relatively narrow range of 0.7509-0.7537 before closing at 0.7525. In early Asia, the Aussie Battler climbed to 0.7545. The RBA is not expected to change its overnight rate from a record low of 0.1% after its meeting today. However, traders and investors will listen to Governor Philip Lowe at his press conference to see what future directions the RBA has in store. Immediate resistance is found at 0.7570 followed by 0.7600. Immediate support stands at 0.7510 followed by 0.7480. Look to trade a likely 0.7510-0.7560.
  • EUR / USD – The shared currency traded in a lackluster range of 1.1851 to 1.1880 overnight. The euro opened at 1.1865 versus 1.1863 yesterday. The mostly bullish European Services and Eurozone PMIs failed to push the EUR / USD higher. Today sees the publication of PMIs for European construction and the euro zone as well as the ZEW index of German economic sentiment and the euro zone. EUR / USD has immediate resistance at 1.1880 and 1.1910. Immediate support can be found at 1.1850 and 1.1820. Look for a likely range today of 1.1850-1.1900.
  • USD / JPY – Open flat at 110.97 (111.00 yesterday). The dollar traded in a tight range overnight of 110.77 to 111.19. The greenback has immediate resistance against the yen at 111.20 (strong) followed by 111.50. Immediate support lies at 110.70 and 110.40. Look for consolidation in a likely range today of 110.80 to 111.30. As we prepare for the Tokyo Olympics amid increasing global cases of the delta strain of Covid-19, this currency pair could heat up.
  • GBP / USD – The British pound edged up against the US dollar, ending up 0.25% at 1.3843 (1.3830 yesterday). GBP / USD has immediate resistance at 1.3860 (overnight high traded was 1.3862). The next resistance level is at 1.3900. Immediate support can be found at 1.3800 (overnight low at 1.3802). The next level of support is at 1.3770. Expect the British Pound to move higher in a likely trade between 1.3810 and 1.3880 today.

good tuesday everyone

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