Focus on RBA as Australian Dollar Maintains Strength
| Action Insight Mid-Day Report 5-6-24 |
Focus on RBA as Australian Dollar Maintains Strength |
As the market transitions into US session, Australian Dollar maintains its position as the strongest currency of the day. While no significant economic data is expected from the US or Canada, the focus shifts to appearances by SNB Chair Thomas Jordan, as well as Fed officials Thomas Barkin and John Williams. However, traders are expected to look through these events, anticipating insights from the RBA's decision. Expectations are widespread that RBA will maintain its policy rate unchanged at 4.35%. Attention will be directed towards the new economic forecasts and the post-meeting press conference. The key question revolves around whether Governor Michele Bullock will shift her stance from a neutral position of "no ruling anything in or out" to a "tightening bias" stance. Any shift in Bullock's tone could indicate the central bank's future direction, whether it's on track for either a rate cut as some economists expect in November. Or a hike as forecasted by Judo Bank chief economic adviser Warren Hogan, top economic forecaster in the Australian Financial Review's first annual ranking of economists in 2023... |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.9001; (P) 0.9055; (R1) 0.9104; More.... Outlook in USD/CHF is unchanged and intraday bias stays on the downside. Sustained break of 55 D EMA (now at 0.8993) will bring deeper fall to 38.2% retracement of 0.8332 to 0.9223 at 0.8883. On the upside, above 0.9087 minor resistance will turn intraday bias again first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:00 | AUD | TD Securities Inflation M/M Apr | 0.10% | 0.10% | | 01:45 | CNY | Caixin Services PMI Apr | 52.5 | 52.5 | 52.7 | | 07:45 | EUR | Italy Services PMI Apr | 54.3 | 54.7 | 54.6 | | 07:50 | EUR | France Services PMI Apr | 51.3 | 50.5 | 50.5 | | 07:55 | EUR | Germany Services PMI Apr F | 53.2 | 53.3 | 53.3 | | 08:00 | EUR | Eurozone Services PMI Apr F | 53.3 | 52.9 | 52.9 | | 08:30 | EUR | Eurozone Sentix Investor Confidence May | -3.6 | -4.8 | -5.9 | | 09:00 | EUR | Eurozone PPI M/M Mar | -0.40% | -0.70% | -1.00% | -1.10% | | 09:00 | EUR | Eurozone PPI Y/Y Mar | -7.8% | -8.30% | -8.50% |
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