Strong Inflation Boosts Aussie, Euro Struggle Returns
Action Insight Daily Report 6-26-24 |
Strong Inflation Boosts Aussie, Euro Struggle Returns |
Australian Dollar surged broadly in Asian session following a much stronger-than-expected monthly CPI report, sparking speculation that RBA might return to rate hikes in August. Comments from a top RBA official also indicated that the central bank is vigilant about upside risks to inflation. The upcoming inflation reports for June and the more critical Q2 data will be crucial for RBA's next move. Even if there isn't another rate hike, it's clear that interest rates will need to remain high for longer. Canadian Dollar is following Aussie as the second strongest currency, continuing to benefit from stronger-than-expected Canadian CPI data released overnight. Dollar is currently the third strongest, supported by renewed weakness in Euro and Yen. Euro is at the bottom of the performance chart along with Swiss Franc, followed by Yen. British Pound and New Zealand Dollar are positioned in the middle. |
EUR/AUD Daily Outlook Daily Pivots: (S1) 1.6083; (P) 1.6113; (R1) 1.6149; More... EUR/AUD's down trend resumes by breaking through 1.6026 today and intraday bias is back on the downside. Next target is 100% projection of 1.6679 to 1.6211 from 1.6418 at 1.5950. Firm break there will target 1.5846 key support next. For now, risk will stay on the downside as long as 1.6159 resistance holds, in case of recovery. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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01:00 | AUD | Westpac Leading Index M/M May | 0.00% | 0.00% | 01:30 | AUD | Monthly CPI Y/Y May | 4.00% | 3.50% | 3.60% | 06:00 | EUR | Germany GfK Consumer Confidence Jul | -21.8 | -20 | -20.9 | -21 | 08:00 | CHF | UBS Economic Expectations Jun | 18.2 | 14:00 | USD | New Home Sales M/M May | 650K | 634K | 14:30 | USD | Crude Oil Inventories | -2.6M | -2.5M |
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