Aussie Rises Despite Sluggish Retail Sales, Boosted by Chinese Housing Measures
| Action Insight Daily Report 5-28-24 |
Aussie Rises Despite Sluggish Retail Sales, Boosted by Chinese Housing Measures |
Australian Dollar strengthened broadly in Asian session today, shrugging off lackluster retail sales data. Instead, Aussie is responding positively to Shanghai's announcement of significant policy measures aimed at boosting the housing market. Yesterday, China's commercial and financial hub declared it would relax home purchase restrictions and provide subsidies for new flat buyers. This move is designed to invigorate the city's real estate sector and comes less than two weeks after the central government introduced a rescue package to prevent a property market collapse. Conversely, Dollar is trading broadly lower as last week's rebound attempt has faded. There has been no new information to suggest a shift in Fed's policy outlook. Fed fund futures still indicate a 50/50 chance of a rate cut in September. As financial markets are digesting these expectations well, risk-on sentiment could return, putting pressure on the greenback. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6631; (P) 0.6645; (R1) 0.6669; More... AUD/USD's recovery from 0.6591 extends higher today, but stays below 0.6713 resistance. Intraday bias remains neutral first. Further rally is in favor with 0.6578 cluster support (38.2% retracement of 0.6361 to 0.6713 at 0.6579 intact. On the upside, firm break of 0.6713 will resume whole rise from 0.6361 to 0.6870 resistance next. However, firm break of 0.6578 will dampen this bullish view, and bring deeper fall to 61.8% retracement at 0.6495. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:01 | GBP | BRC Shop Price Index Y/Y Apr | 0.60% | 0.80% | | 23:50 | JPY | Corporate Service Price Index Y/Y Apr | 2.80% | 2.30% | 2.30% | 2.40% | | 01:30 | AUD | Retail Sales M/M Apr | 0.10% | 0.30% | -0.40% | | 12:30 | CAD | Industrial Product Price M/M Apr | 0.60% | 0.80% | | 12:30 | CAD | Raw Material Price Index Apr | 3.20% | 4.70% | | 13:00 | USD | S&P/Case-Shiller Home Price Indices Y/Y Mar | 7.50% | 7.30% | | 13:00 | USD | Housing Price Index M/M Mar | 0.60% | 1.20% | | 14:00 | USD | Consumer Confidence May | 96.1 | 97 |
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