The FED left rates unchanged with its narrative seen as more amenable than what the market was expecting. CPI inflation came in lower than expected with equity markets providing a mixed result, S&P500 currently 0.5% lower. Brent up 0.5% to $41.35, Copper jumped 3.5% to a five-month high, iron ore slipped to $103.40 and gold is up 1.2%.
AUD rallied to its highest level since July 2019 going from 0.6980 to 0.7063
EUR overnight range 1.1345 to 1.1422 – a three-month high.
USD/JPY fell from 107.50 to 106.99 – a one-month low.
NZD rose from 0.6530 to 0.6584 – a four-month high.
AUD/NZD rose from 1.0680 to 1.0730.
- AUD/USD eases from the post-FOMC top of 0.7063, also the fresh high since July 2019.
- FED maintained a dovish tone with downbeat forecasts/projections joining no rate change.
- China’s inflation numbers, Aussie Westpac Consumer Confidence flashed soft data.
- Australia’s Consumer Inflation Expectations and the US-China can entertain markets amid a light calendar.
Looking forward, markets might have to rely on the news headlines for fresh impetus amid a light calendar in Asia. Nonetheless, Aussie Consumer Inflation Expectations for June, expected 4.2% from 3.4% prior, might offer intermediate moves.
Despite the AUD's limited capacity to stay above 0.7000, it remains in the vicinity of five-month tops off-late. Also, the quote’s ability to keep the bulls happy beyond 200-day SMA speaks loud of the Aussie pair’s price strength
Event Risk Data Today
Australia: June update of MI inflation expectations.
New Zealand: Retail card spending
US: May PPI is expected to recover to 0.1%. Initial jobless claims are also due.