Aussie Recovers with RBA Hold and China Stocks Rally, But Momentum Tepid
| Action Insight Daily Report 2-6-24 |
Aussie Recovers with RBA Hold and China Stocks Rally, But Momentum Tepid |
Australian Dollar recovered mildly today, but momentum is so far limited. While RBA softened the hawkish stances after standing pat on rates, the left is still left open for more tightening. Governor Michele Bullock emphasized in the post-meeting press conference that the inflationary battle is far from won, while the board would keep this option on the table. Aussie's buoyancy was also bolstered by the strong rebound in Chinese and Hong Kong stock markets. A notable boost in investor confidence came from Central Huijin Investment, a subsidiary of China's sovereign wealth fund, which announced its intention to increase investments in ETFs linked to major stock indices, aiming at market stabilization. Within the broader currency spectrum, New Zealand Dollar the Canadian Dollar have also shown strength, albeit trailing Australian Dollar. US Dollar, on the other hand, has seen a broad but modest retreat, retaining a significant portion of its gains from the week. Meanwhile, European majors and Yen are finding themselves on the weaker side. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6461; (P) 0.6491; (R1) 0.6513; More... Intraday bias in AUD/USD is turned neutral with current recovery. But further decline is expected as long as 0.6621 resistance holds. Break of 0.6468 will resume the fall from 0.6870, as part of the down trend from 0.7156, to 61.8% projection of 0.6870 to 0.6524 from 0.6621 at 0.6407 next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:30 | JPY | Labor Cash Earnings Y/Y Dec | 1.00% | 1.30% | 0.70% | | 23:30 | JPY | Household Spending Y/Y Dec | -2.50% | -2.10% | -2.90% | | 03:30 | AUD | RBA Interest Rate Decision | 4.35% | 4.35% | 4.35% | | 04:30 | AUD | RBA Press Conference | | 07:00 | EUR | Germany Factory Orders M/M Dec | 0.30% | 0.30% | | 09:30 | GBP | Construction PMI Jan | 47.2 | 46.8 | | 10:00 | EUR | Eurozone Retail Sales M/M Dec | -1.30% | -0.30% | | 13:30 | CAD | Building Permits M/M Dec | 1.20% | -3.90% | | 15:00 | CAD | Ivey PMI Jan | 55 | 56.3 |
|
|
|
