FX News

RBA mood to set AUD direction

Market Overview

• Worldwide coronavirus cases surpass 171.451 million with over 3.564 million official
• Japan coronavirus numbers continue to rise with restriction measures to continue to within 5 weeks of the Olympic Games.
• Iron Ore prices have soured as China ease emission controls which will boost Australian exports.
• Malaysia will go into a nationwide lockdown on the 1st of June closing down most industries including car manufacturers Toyota and Honda until the 14th of June.
• No fireworks are predicted today in the RBA policy statement but risks are tilted to a “hawkish” shift.
• New Melbourne community spread coronavirus infections are expected to draw out Thursday’s lockdown reopening which will have economic impacts as there is no current federal government wage support program.

Major Announcements last week:

  • RBNZ look to start tapering QE and hike rates from third quarter 2022
  • US Prelim GDP q/q prints at 6.4%
  • US Unemployment claims publish at 406k down from predictions of 427k
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