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Navigate Global Payments – Markets Today 22nd June 2022

 

MARKET WRAP 22nd June 2022

  • RBA Governor Lowe said Australians should be prepared for further interest rate increases and that level of rates is still very low for an economy with low unemployment and high inflation, and effectively ruled out a 75bps hike at the next meeting by noting expectations should be for a 25 or 50bps hike.

 

  • Additionally, there were RBA minutes which stated that members agreed further steps would need to be taken to normalize monetary conditions in the months ahead and the board remains committed to doing what is necessary to ensure inflation in Australia returns to the target.

 

  • Fed’s Barkin (2024 voter) said he supported a 75bps rate hike at the June meeting and noted that inflation is high and broad-based, while he added the Fed can get inflation back to 2% without breaking anything and that 50bps or 75bps range for the July meeting seems reasonable to him. Barkin open to 50 or 75bps hike in July and raising rates as fast as “feasible”

 

  • US stocks gained as participants returned from the holiday weekend to a broad risk-on mood with Wall Street partially atoning for last week’s worst weekly performance since March 2020.

 

  • AUD/USD gained traction on Tuesday and climbed toward 0.70. Economists at Rabobank expect the pair to edge higher towards the 0.73 by end-2022

 

  • “We expect AUD/USD can creep higher on a 12-month view based on Australia’s relatively sound economic outlook. However, the aussie is likely to be sensitive to risks regarding Chinese economic output and to broader concerns regarding slowing global growth.”

 

  • “We expect AUD/USD to hold close to current levels on a one-month view and rise moderately to the 0.73 area by year-end.”

 

  • Weekly Key Risk Events

• NZ – NZD Imports/Exports

• NZ – Trade Balance

• JP – BOJ Minutes of April Meeting

• UK – Core CPI y/y and CPI y/y

• UK – PPI and Retail Price Index

• CA – Core CPI y/y and CPI y/y

• CA – Bank of Canada SDG Rogers Holds Fireside Chat

• EU – Consumer Confidence

• US – Powell Delivers Semi-Annual Testimony Before Senate Panel

• US – Fed’s Evans Discusses Economic Outlook

 

Source FX Street

CURRENCY/INDICIES RANGES

Currency Pair Low High
AUD/USD 0.69345 0.6993
EUR/USD 1.0509 1.05825
GBP/USD 1.2243 1.23245
USD/JPY 134.94 136.68
NZD/USD 0.6318 0.63625
USD/CAD 1.2907 1.29825
USD/CNH 6.672 6.701
AUD/JPY 93.77 95.26
AUD/NZD 1.0971 1.1013
DXY 103.938 104.536

 

Equity Index Daily % Change Closing Level
ASX 1.4% 6524
SHANGHAI COMP -0.3% 3307
NIKKEI 1.8% 26246
FTSE 0.4% 7152
DAX 0.2% 13292
CAC 0.8% 5965
DOW JONES 2.1% 30530
S&P 500 2.4% 3765
NASDAQ 2.5% 11069
VIX -2.7% 30.19
Commodity Daily % Change Closing Level
CRUDE OIL 1.6% 109.8
ICE NAT GAS 2.5% 205.9
GOLD -0.3% 1833.4
SILVER -0.2% 21.7
SGX IRON ORE -0.8% 114.0
CMX COPPER 0.2% 403.7
ICE SUGAR 0.3% 18.8
ICE COTTON -3.8% 205.9
CBT WHEAT -5.5% 989.0
BITCOIN 2.2% 20879.7
Equity Index Daily % Change Closing Level
ASX 1.4% 6524
SHANGHAI COMP -0.3% 3307
     
Rates Markets Yield Daily Change
US 2 YEAR 3.19% 1.1
US 10 YEAR 3.28% 5.2
AUST 2 YEAR 3.15% -12.5
AUST 10 YEAR 4.06% -0.5

Source Bloomberg

   

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Disclaimer: This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711. The material contains general commentary only and does not constitute investment or any other advice. Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors. This information has been prepared without considering your objectives, financial situation or needs. Please seek your own independent legal or financial advice before proceeding with any investment decision. The information is believed to be accurate at the time of compilation and is provided in good faith. Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract. This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change. Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.

 

 

 

 

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Disclaimer:This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711.  The material contains general commentary only and does not constitute investment or any other advice.  Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors.  This information has been prepared without considering your objectives, financial situation or needs.  Please seek your own independent legal or financial advice before proceeding with any investment decision. The information is believed to be accurate at the time of compilation and is provided in good faith.  Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract.  This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change.  Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.

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