June 11, 2024 04:37 GMT
Dollar Firmer, But Off Highs, A$ Weighed By Softer China Equities
FOREX
The USD is off earlier highs, the BBDXY last just above 1264.3, only marginally above end NY levels from Monday.
- Regional equity sentiment is mostly negative with returning China and Hong Kong markets close to the weakest in the region. Tourism spending concerns and housing developments weighing.
- This hurt A$ sentiment. AUD/USD got to 0.6591, but now sits back around 0.6600. Recent lows under 0.6580 remain intact. Iron ore prices remain under pressure, the active SGX contract back to the $104/ton handle.
- On the data front, Australia's NAB business survey showed a further deterioration in conditions and confidence. However, it also showed price and cost measures picked up. NZD/USD is down slightly last near 0.6120.
- USD/JPY got to highs of 157.33, but we now sit slightly lows, back near 157.25. We had money supply data, which didn't move sentiment. A Reuters survey ahead of this Friday's BOJ decision showed 61% of economists expect bond buying to be reduced at the meeting, up from the 41% polled previously.
- In the cross asset space, US yields sit lower, off around 1-2bps across the key benchmarks. Gold and oil sit off Monday highs.
- Later there are UK employment & wage data and US NFIB small business optimism for May. The ECB’s Lane, Buch and Elderson speak.
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