Global sentiment was assisted by stronger European activity surveys, signs of further US government stimulus, and soothed US-China tared tensions. The S&P500 is up 0.4%,while the NASDAQ100 jumped 0.8% to a fresh record high. On the commodities front, Brent fell 1.5% to $42.45, copper fell 1.5%, iron ore fell 0.2% to $101.10, and gold rose 0.9%.
The US dollar index closed 0.4% on the day.
EUR traded between 1.1260 to 1.1349.
USD/JPY fell from 107.20 to 106.07.
AUD rose to 0.6975 before retreating to 0.6935.
NZD traded to 0.6533 before slipping to 0.6495.
AUD/NZD ranged between 1.0670 and 1.0690
AUD/USD prints another failure to probe 0.7000 threshold, pulls back from 0.6975.
Upbeat global PMIs, Trump administration’s U-turn on the US-China trade deal favour risk-on sentiment.
Easing of lock down restrictions, hopes of further stimulus counter trade negative news from Global Times.
A lack of major data/events will keep the market’s focus on trade/virus updates
Looking forward, markets will keep their eyes on the qualitative catalysts for immediate impetus amid a light calendar. In doing so, the virus, trade headlines will be the keys to follow.
Buyers remain hopeful to confront 0.7000 threshold, in search of refreshing the monthly high of 0.7075, unless the pair trades beyond 21-day exponential moving average (EMA) level around 0.6830/25.
Event Risk Data Today
New Zealand: The RBNZ will meet today, with expectations the cash rate and asset purchase program to remain unchanged.
China: Current Account Balance is likely to confirm a dramatic fall in Q1 2020 to a deficit of $29.7 billion, the services balance is expected to be supportive going forward.
Germany: June IFO business climate survey expected to improve from 79.5 to 84.8 as optimism grows.
US: The FHFA house price index expected to show slight gains with market f/c: 0.3%. FOMC members Evans (02:30 AEST) and Bullard (05:00 AEST) will take part in virtual discussions on the economy