15th June 2020 - Depressed above 0.6800 ahead of China data


Market Headlines

Equity markets bounced back into the weekend despite the growing concerns of a second wave of the virus throughout some states. Brent fell 0.5% to $38.75, copper rose 0.5%, iron ore rose 1.6% to $104.85, and gold rose 0.2%. Data/News flow releases were light as US bond yields and risky currencies were range-bound.


Currencies

The US dollar index closed up 0.6%

EUR ranged between 1.1213 and 1.1340.

USD/JPY rose from 107.20 to 107.55.

AUD ranged between 0.6810 and 0.6910.

NZD ranged between 0.6397 and 0.6477.

AUD/NZD ranged between 1.0635 and 1.0682.


AUD Thoughts

- AUD/USD begins the week with a gap-down opening to 0.6843.

- Risk sentiment remains heavy amid rising fears of the coronavirus second wave.

- The aftershocks of Fed Chair’s pessimism still trouble the traders.

- Aussie PM’s speech, China’s Industrial Production, Retail Sales in the spotlight.


AUD/USD demonstrated late resilience last week to re-establish a 0.68c handle. Additional demand is expected at 0.6800 which should slow any move lower while offering interest is expected to increase between 0.6900 - 0.6920.


Event Risk Data Today

Australia: ABS “Household Impacts of COVID-19 Survey” for May 26-28. The survey basically provide insights into the effects of the coronavirus on jobs, training, time use etc. as restrictions ease. PM speaks at National Press Club


New Zealand: REINZ House Sales y/y, Performance Services Index, Net Migration SA


China: Industrial production (market f/c -3.0%), Fixed Asset Investment (market f/c -6.0%), May Retail Sales


Euro Area: The April Trade Balance


US: June Empire Manufacturing Index expected to recover to -30.0, mirroring the broader improvement in conditions in New York. FOMC’s Kaplan (01:00 AEST) and Daly (02:30 AEST) will speak.


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