Aussie Gains on Solid PMIs and RBA Hike Possibility
| Action Insight Daily Report 4-23-24 |
Aussie Gains on Solid PMIs and RBA Hike Possibility |
Australian Dollar trades broadly higher today, lifted partly by resurgence in risk sentiment, as well as robust PMI data reflecting the cyclical recovery in Australian economy. Improvement in the economic outlook reduces the immediate need of a rate cut by RBA. Judo Bank, while complied the PMI data, warned about the possibility for another rate hike if economic activity continues to pick up while inflation remains elevated. Additionally, there is growing concern among financial analysts that should Australia begin to see acceleration in inflation similar to recent trends in the US, more monetary tightening might be need. For now, though, the consensus holds that the bar for another RBA rate increase remains high. Japanese yen is the second strongest currency today, though its momentum is relatively weak. Comments from Japan indicating readiness for currency intervention have so far elicited muted responses from the markets. Nonetheless, increasing concerns are being voiced about the weaker Yen driving up prices, which would eventually leading to further tightening by BoJ. Nonetheless, market focus will be directed to BoJ's upcoming economic projections this Friday first... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6423; (P) 0.6439; (R1) 0.6465; More... AUD/USD's recovery from 0.6361 continues today but stays below 0.6480 support turned resistance. Intraday bias remains neutral first. Upside is still expected to be limited by 0.6480 support turned resistance to bring another decline. On the downside, break of 0.6361 will resume the fall from 0.6870 to 100% projection of 0.6870 to 0.6442 from 0.6643 at 0.6215. Nevertheless, sustained break of 0.6480 will bring stronger rebound to 55 D EMA (now at 0.6527). | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:00 | AUD | Manufacturing PMI Apr P | 49.9 | 47.3 | | 23:00 | AUD | Services PMI Apr P | 54.2 | 54.4 | | 00:30 | JPY | Manufacturing PMI Apr P | 49.9 | 48 | 48.2 | | 00:30 | JPY | Services PMI Apr P | 54.6 | 54.1 | | 06:00 | GBP | Public Sector Net Borrowing (GBP) Mar | 8.9B | 7.5B | | 07:15 | EUR | France Manufacturing PMI Apr P | 46.9 | 46.2 | | 07:15 | EUR | France Services PMI Apr P | 49 | 48.3 | | 07:30 | EUR | Germany Manufacturing PMI Apr P | 42.9 | 41.9 | | 07:30 | EUR | Germany Services PMI Apr P | 50.5 | 50.1 | | 08:00 | EUR | Eurozone Manufacturing PMI Apr P | 46.5 | 46.1 | | 08:00 | EUR | Eurozone Services PMI Apr P | 51.8 | 51.5 | | 08:30 | GBP | Manufacturing PMI Apr P | 50.2 | 50.3 | | 08:30 | GBP | Services PMI Apr P | 53 | 53.1 | | 13:45 | USD | Manufacturing PMI Apr P | 52 | 51.9 | | 13:45 | USD | Services PMI Apr P | 52 | 51.7 | | 14:00 | USD | New Home Sales Mar | 668K | 662K |
|
|
|
