Aussie higher ahead of GDP at 11:30am AEST
The Australian dollar was the best performer overnight, with global markets remaining broadly positive as US equities rose for a ninth straight session, their longest winning streak in over a year.
AUD/USD gained 0.3%, reaching a two-week high ahead of today’s March quarter GDP report due at 11:30am AEST.
Quarterly growth is forecast at 0.4%, down from 0.8% in December, while annual growth is expected to hold steady at 2.6%.
In other markets, the kiwi underperformed, with NZD/USD down 0.1% after reversing sharply from 0.6000 earlier in the week.
European FX markets were broadly flat, while the US dollar was mostly stronger in Asia.
USD gains on noisy backdrop
US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu offered conflicting accounts of a recent call on the fighting in Lebanon, underscoring continued uncertainty around a ceasefire as the conflict enters its fourth month. Efforts to revive talks involving Iran remain stalled, adding to the uncertain backdrop.
US factory data held up well, with ISM manufacturing beating expectations. Both headline and new orders expanded for a fifth straight month, with most underlying components also improving. Even so, industrial stocks showed a mixed response that did not fully reflect the stronger data.
The US dollar has generally firmed this week, supported by the noisy geopolitical backdrop and stronger economic data.
In APAC FX, USD/CNH is holding just above its recent low of 6.7589.
To build upward momentum, the pair needs to break above the 21-day EMA at 6.7920. A move beyond that would open the way toward the 50-day EMA at 6.8227 as the next key level.
USD/SGD rose 0.1% yesterday, moving toward the two-month high at 1.2840.
Intervention warnings flash as USD/JPY nears 160
Japan’s finance minister said officials stand ready to step in if currency moves become excessive, following evidence of heavy intervention between late April and late May.
Satsuki Katayama pointed to sharp moves across oil and other markets, stressing that volatility remains elevated. She added that Japan remains in close contact with US counterparts on currency developments.
USD/JPY continues to edge higher toward the key 160.00 level, currently sitting around 1% below its April 30 peak of 160.72.
The 21-day EMA near 158.92 and the 50-day EMA at 158.54 should help cushion dips, while 160.00 remains the key resistance level.
Ongoing yen weakness is also evident across crosses, with AUD/JPY, GBP/JPY and SGD/JPY all trading near multi-decade highs.
Aussie higher ahead of GDP
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Calendar: 1 – 5 June
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
