FX News

FX Update: RBA focus

Market Overview

Key Points:

• US and Canada holidays create a quiet start to the week.
• Comments from ECB’s Lagarde- It’s critical for central banks to keep inflation expectations anchored. The chances of an ECB hike this month is 30%
• Oil closes at 85.80 the highest since November 2022
• Chinese Govt to create a new body to support the failing private sector as confidence plunges among businesses.
• US Non-Farm Payrolls slowed as the labour market starts to cool off. Unemployment rose from 3.5% to 3.8% suggesting the recent work done by the Federal Reserve is working.
• The New Zealand Dollar (NZD) was the strongest currency last week with the Euro (EUR) the worst performer.

Major Announcements last week:
• US Consumer Confidence Index dips to 106.1 from 114.0
• Australian CPI y/y 4.9% down from 5.4%
• US prelim GDP second quarter 2.1% based on expectations of a 2.4% read
• Chinese Caixin Manufacturing PMI beat estimate of 49.0 coming in at 51.0
• US Unemployment 3.8% vs 3.5% expected

Previous ArticleNext Article