USD mostly lower as US shares recover
Financial markets were mostly stronger overnight with US equities staging a recovery after a six-day run of weakness.
US markets were helped by better data with durable goods and consumer confidence numbers both better than expected. The S&P 500 gained 1.2%.
Earlier, Asian stocks were boosted by comments by Chinese premier, Li Qiang, who indicated China would look to increase support for major green transitional projects.
Commodity prices fell, however, with a more than 2.4% drop in the oil price as it neared 14-month lows. A resolution to the weekend’s political troubles in Russia has seen energy prices lower this week.
Aussie hit by oil losses
Across Asia, the improved sentiment mainly saw the US dollar lower, with the USD/CNH down 0.3%.
The USD/SGD fell 0.3% as it turned from six-month highs.
The Australian dollar, however, was hit by the weaker commodity markets, and was unable to benefit from the improved sentiment.
The AUD/USD – up almost 0.8% during the Asian session – slipped back to close only 0.2% higher.
The NZD/USD ended flat.
Australian CPI in focus
Australian inflation data is seen as critical today with the relatively new monthly CPI series due at 11.30am AEST.
Last month, an unexpected increase from 6.3% to 6.8% shocked markets, and was part of the reason for this month’s unexpected rate hike from the Reserve Bank of Australia.
Today, the market is looking for a move back to 6.1%.
Overnight, Canadian headline annual CPI fell from 4.4% to 3.4% while core inflation fell by more than expected to 3.7%. The CAD dropped on the news.
USD mostly weaker, but commodity sell-off hits Aussie
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 26 – 30 June
All times AEST
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