Should we keep an eye on the strength of Oceania’s currencies?

Should we keep an eye on the strength of Oceania’s currencies?

28.06.2021

Last weekend, the S&P 500 hit a new record high in the U.S. market, sparking a risk-on rally characterized by rising stock prices, interest rates, and commodity prices. The VIX (fear index) fell further from the previous day to 15.6, indicating market stability. Gold has been trading within a range of $1,769 to $1,793 and is currently at $1,783.

In the foreign exchange market, the pound is showing signs of recovery, with GBP/USD attempting to rise around the 1.389 level. GBP/JPY has also rebounded from today’s decline during Asian trading hours and is currently holding firm around 153.7, defending against a new low. However, given that the rebound in Oceania currencies is gaining momentum even more than that of the pound, caution is warranted when assessing the direction of GBP/AUD.The AUD/USD pair has rebounded from the 200-day moving average on the daily chart and is attempting to rise from the 0.759 level.

Today’s key events include the German Import Price Index at 3:00 PM, remarks by German Bundesbank President Bahtmann and UK MPC member Holden at 9:00 PM, remarks by U.S. New York Fed President Williams at 10:00 PM, the U.S. Dallas Fed Manufacturing Activity Index at 11:30 PM, and remarks by U.S. Richmond Fed President Barkin at 1:00 AM.Richmond Fed President. We will carefully assess how prices move during this final week of the month.