Global markets stay strong
The Australian and New Zealand dollars were higher overnight even as yesterday’s softer than expected Australian inflation reading sparked new hopes for interest rate cuts from the Reserve Bank of Australia.
Globally, markets paused after a strong two-day rally saw the US’s Nasdaq 100 reach new all-time highs while the benchmark S&P 500 came within 1.0% of a record.
The kiwi was the best performer in the major markets with the NZD/USD up 0.5%.
The euro and GBP both gained around 0.4% versus the US dollar and were mostly steady in Asia.
The USD/JPY fell 0.2%, USD/SGD fell 0.1% while the USD/CNH.
Aussie higher despite soft inflation
The Australian dollar slipped after May inflation came in softer than expected but later clawed back losses.
Annual inflation rose 2.1%, undercutting forecasts of 2.3%.
A slowdown in core inflation added to the softer tone, with the trimmed mean easing to 2.4% from 2.8% in April.
Financial markets now see a 94% chance of a cut at the RBA’s 7 August meeting.
The AUD/USD remains within the two-cent trading range between 0.6350 and 0.6550.
BOJ’s Tamura hints at bold moves as inflation pressures build
BoJ board member Naoki Tamura warned on Wednesday that Japan may need to act decisively on interest rates, despite concerns over U.S. tariffs weighing on the economy.
Tamura reiterated his view that rate hikes should be measured—not rushed, but not delayed either.
He expects inflation to hover near 2% through fiscal 2027. Still, rising wage growth, persistent services inflation, and steadily climbing costs for public services and rent are adding pressure.
USD/JPY is holding near key support around 21-day EMA of 144.80.
A drop below could signal weaker momentum, while a climb above 50-day EMA of 145.11 would point to positive strength.
SGD/JPY recently pulled back, with the next key support seen at 21-day EMA of 112.59.
Aussie back at highs
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 23 – 28 June
Have a question? [email protected]
*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.
