Free Trial
OIL PRODUCTS

China Still Considering Increase in Export Quotas

US EURODLR OPTIONS

Large ITM Put Spd

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Coming Under Pressure

AUD

AUD/USD whipsawed on Wednesday, as above-forecast CPI reading out of the U.S. roiled markets, boosting hawkish Fed bets but also fuelling recessionary fears. The pair sank in reaction to the release, before staging a firm rebound into the WMR fix and then easing off towards neutral levels into the close.

  • The rebound in the London/NY crossover may have been facilitated by a hawkish surprise provided by the Bank of Canada, which unexpectedly raised its key policy rate by a full percentage point, triggering a downswing in USD/CAD.
  • Cross-asset signals were mixed. Although BBG Commodity Index edged higher, European & U.S. equity benchmarks posted losses come the end of play.
  • AUD/USD has shed a handful of pips this morning as light risk-off flows emerge in G10 FX space. Comments from '22 FOMC voter Mester might be a catalyst, with the policymaker beating the hawkish drum & kicking the can down the road re: potential support for a 100bp rate rise.
  • AUD/USD last deals at $0.6747, down 14 pips on the day. Bears look for a fall through Mar 9, 2020 low of $0.6685 towards the 0.764 proj of the Apr 5 - May 12 - Jun 3 price swing at $0.6647. Bulls keep an eye on Jun 28 high of $0.6964.
  • Australia's labour force survey will grab attention today. Employment is expected to have grown by a further 30k in June, according to Bloomberg consensus forecast. Coupled with an anticipated unchanged participation rate of 66.7%, this would yield a modest downtick in the unemployment rate to 3.8%.
  • Worth noting that consumer inflation expectations will also be published today.
261 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

AUD/USD whipsawed on Wednesday, as above-forecast CPI reading out of the U.S. roiled markets, boosting hawkish Fed bets but also fuelling recessionary fears. The pair sank in reaction to the release, before staging a firm rebound into the WMR fix and then easing off towards neutral levels into the close.

  • The rebound in the London/NY crossover may have been facilitated by a hawkish surprise provided by the Bank of Canada, which unexpectedly raised its key policy rate by a full percentage point, triggering a downswing in USD/CAD.
  • Cross-asset signals were mixed. Although BBG Commodity Index edged higher, European & U.S. equity benchmarks posted losses come the end of play.
  • AUD/USD has shed a handful of pips this morning as light risk-off flows emerge in G10 FX space. Comments from '22 FOMC voter Mester might be a catalyst, with the policymaker beating the hawkish drum & kicking the can down the road re: potential support for a 100bp rate rise.
  • AUD/USD last deals at $0.6747, down 14 pips on the day. Bears look for a fall through Mar 9, 2020 low of $0.6685 towards the 0.764 proj of the Apr 5 - May 12 - Jun 3 price swing at $0.6647. Bulls keep an eye on Jun 28 high of $0.6964.
  • Australia's labour force survey will grab attention today. Employment is expected to have grown by a further 30k in June, according to Bloomberg consensus forecast. Coupled with an anticipated unchanged participation rate of 66.7%, this would yield a modest downtick in the unemployment rate to 3.8%.
  • Worth noting that consumer inflation expectations will also be published today.