RBA's Lack of Hawkishness Weakens Aussie, Yen's Retreat Continues
| Action Insight Daily Report 5-7-24 |
RBA's Lack of Hawkishness Weakens Aussie, Yen's Retreat Continues |
In the aftermath of RBA's decision to maintain interest rates unchanged and the absence of explicit hawkish signals, Australian Dollar weakens mildly. Despite notable upgrades in inflation forecasts, the central bank opted for a cautious approach, refraining from signaling imminent rate hikes and maintaining a stance of "not ruling anything in or out." Recent stronger-than-expected inflation data did not push RBA closer to resume monetary tightening, at least for the time being. Meanwhile, Japanese Yen displayed continued weakness, retracing last week's strong gains. Japan's top currency diplomat, Masato Kanda, chose not to comment US Treasury Secretary Janet Yellen's recent assertion that currency intervention is permissible only in exceptional circumstances. Kanda's posture led markets to believe that last week's alleged intervention may have been unilateral rather than coordinated... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6608; (P) 0.6623; (R1) 0.6642; More... Intraday bias in AUD/USD is turned neutral with current retreat. Some consolidations could be seen but further rally is expected as long as 0.6464 support holds. As noted before, fall from 0.6870 could have completed with three waves down to 0.6361. Above 0.6645 will target 100% projection of 0.6361 to 0.6585 from 0.6464 at 0.6688 next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:30 | JPY | Services PMI Apr F | 54.3 | 54.6 | 54.6 | | 04:30 | AUD | RBA Interest Rate Decision | 4.35% | 4.35% | 4.35% | | 05:30 | AUD | RBA Press Conference | | 05:45 | CHF | Unemployment Rate M/M Apr | 2.30% | 2.30% | | 06:00 | EUR | Germany Trade Balance (EUR) Mar | 22.4B | 21.4B | | 06:00 | EUR | Germany Factory Orders M/M Mar | 0.40% | 0.20% | | 06:45 | EUR | France Trade Balance (EUR) Mar | -5.0B | -5.2B | | 07:00 | CHF | Foreign Currency Reserves (CHF) Apr | 715B | | 08:30 | GBP | Construction PMI Apr | 51.1 | 50.2 | | 09:00 | EUR | Eurozone Retail Sales M/M Mar | 0.60% | -0.50% | | 14:00 | CAD | Ivey PMI Apr | 58.1 | 57.5 |
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