Dollar Under Pressure as Markets Await Crucial US CPI , Aussie and Kiwi Lead Gains
| Action Insight Daily Report 5-15-24 |
Dollar Under Pressure as Markets Await Crucial US CPI , Aussie and Kiwi Lead Gains |
Dollar remains broadly under pressure during Asian session as markets await the highly anticipated US CPI data. Expectations of Fed rate cuts have been building again since non-farm payroll data indicated a loosening job market. However, for the Fed to consider monetary easing, it is crucial that inflation shows signs of following suit with clear decline. Fed Chair Jerome Powell, appearing unperturbed by the stronger-than-expected PPI readings released yesterday, described the data as "mixed" rather than "hot." Additionally, he reiterated that the next move in interest rates is unlikely to be a hike. Today's CPI data will be pivotal in shaping both market expectations and Fed's future policy direction. Meanwhile, Australian Dollar and New Zealand Dollar are currently the strongest performers of the day. Aussie, in particular, is buoyed by reports that China is considering a plan for local governments to purchase millions of unsold homes to alleviate the ongoing property crisis. This development has provided significant support to the Aussie, overshadowing the news that US has unveiled a bundle of tariff increases on various Chinese imports, including electric vehicles, computer chips, and medical products. The market largely shrugged off these tariffs, focusing instead on the potential boost from China's housing plan... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6595; (P) 0.6612; (R1) 0.6643; More... AUD/USD's breach of 0.6645 resistance suggests that rise from 0.6361 is resuming. Intraday bias is now on the upside for 61.8% projection of 0.6464 to 0.6645 from 0.6578 at 0.6690. Firm break there will target 100% projection at 0.6759. For now, further rally will remain in favor as long as 0.6578 support holds, in case of retreat. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:30 | AUD | Wage Price Index Q/Q Q1 | 0.80% | 1.00% | 0.90% | 1.00% | | 09:00 | EUR | Eurozone GDP Q/Q Q1 P | 0.30% | 0.30% | | 09:00 | EUR | Eurozone Industrial Production M/M Mar | -0.30% | 0.80% | | 09:00 | EUR | Eurozone Employment Change Q/Q Q1 P | 0.30% | 0.30% | | 12:15 | CAD | Housing Starts Y/Y Apr | 232K | 242K | | 12:30 | CAD | Manufacturing Sales M/M Mar | -1.40% | 0.70% | | 12:30 | USD | Empire State Manufacturing Index May | -10.8 | -14.3 | | 12:30 | USD | Retail Sales M/M Apr | 0.40% | 0.70% | | 12:30 | USD | Retail Sales ex Autos M/M Apr | 0.20% | 1.10% | | 12:30 | USD | CPI M/M Apr | 0.30% | 0.40% | | 12:30 | USD | CPI Y/Y Apr | 3.40% | 3.50% | | 12:30 | USD | CPI Core M/M Apr | 0.30% | 0.40% | | 12:30 | USD | CPI Core Y/Y Apr | 3.60% | 3.80% | | 14:00 | USD | Business Inventories Mar | 0.00% | 0.40% | | 14:00 | USD | NAHB Housing Market Index May | 51 | 51 | | 14:30 | USD | Crude Oil Inventories | -1.4M |
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