Articles
China Trade Balance CNY up to 703.73B in June from previous 586.4B
401905 July 12, 2024 11:14 FXStreet Market News
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China Exports (YoY) CNY down to 10.7% in June from previous 11.2%
401904 July 12, 2024 11:14 FXStreet Market News
Information
on
these
pages
contains
forward-looking
statements
that
involve
risks
and
uncertainties.
Markets
and
instruments
profiled
on
this
page
are
for
informational
purposes
only
and
should
not
in
any
way
come
across
as
a
recommendation
to
buy
or
sell
in
these
assets.
You
should
do
your
own
thorough
research
before
making
any
investment
decisions.
FXStreet
does
not
in
any
way
guarantee
that
this
information
is
free
from
mistakes,
errors,
or
material
misstatements.
It
also
does
not
guarantee
that
this
information
is
of
a
timely
nature.
Investing
in
Open
Markets
involves
a
great
deal
of
risk,
including
the
loss
of
all
or
a
portion
of
your
investment,
as
well
as
emotional
distress.
All
risks,
losses
and
costs
associated
with
investing,
including
total
loss
of
principal,
are
your
responsibility.
The
views
and
opinions
expressed
in
this
article
are
those
of
the
authors
and
do
not
necessarily
reflect
the
official
policy
or
position
of
FXStreet
nor
its
advertisers.
The
author
will
not
be
held
responsible
for
information
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is
found
at
the
end
of
links
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on
this
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If
not
otherwise
explicitly
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in
the
body
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the
article,
at
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time
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writing,
the
author
has
no
position
in
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and
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The
author
has
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FXStreet.
FXStreet
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The
author
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USD/INR gathers strength ahead of Indian CPI, US CPI data
401901 July 12, 2024 10:39 FXStreet Market News
-
The
Indian
Rupee
weakens
in
Friday’s
early
Asian
session. -
The
renewed
demand
for
US
Dollar
and
recovery
of
crude
oil
prices
undermine
the
INR. -
India’s
Consumer
Price
Index
(CPI)
and
US
Producer
Price
Index
(PPI)
for
June
will
be
the
highlights
on
Friday.
The
Indian
Rupee
(INR)
loses
traction
on
Friday
amid
the
modest
recovery
of
the
US
Dollar
(USD).
The
demand
for
the
Greenback
from
state-run
banks
and
local
importers
limits
the
INR’s
potential
gains.
Additionally,
the
rebound
of
crude
oil
prices
also
exerts
some
selling
pressure
on
the
local
currency
as
India
is
the
third
largest
consumer
of
crude
oil
in
the
world,
after
the
United
States
and
China.
On
the
other
hand,
the
positive
trends
in
the
Indian
stock
market,
sustained
foreign
inflows,
and
India’s
strong
macroeconomic
growth
might
underpin
the
INR.
Also,
the
rising
expectation
of
the
US
Federal
Reserve
(Fed)
rate
cut
in
September
after
the
softer
US
inflation
data
is
likely
to
weigh
on
the
USD
and
cap
the
upside
for
the
USD/INR
pair
in
the
near
term.
Later
on
Friday,
Investors
will
keep
an
eye
on
the
Indian
Consumer
Price
Index
(CPI)
data,
which
is
expected
to
show
an
increase
of
4.8%
in
June.
Also,
the
Industrial
Production
and
Manufacturing
Output
will
be
released.
On
the
US
docket,
the
US
June
Producer
Price
Index
(PPI)
and
the
preliminary
July
Michigan
Consumer
Sentiment
gauge
will
be
published.
Daily
Digest
Market
Movers:
Indian
Rupee
remains
sensitive
to
multiple
headwinds
-
The
International
Monetary
Fund
(IMF)
estimates
that
shifting
employment
into
construction,
services,
and
manufacturing
might
boost
India’s
GDP
growth
by
0.2
to
0.5
percentage
points. -
The
US
Consumer
Price
Index
(CPI)
rose
3.0%
on
a
yearly
basis
in
June,
compared
to
a
rise
of
3.3%
in
May.
This
reading
came
in
below
the
market
consensus
of
3.1%,
according
to
the
US
Bureau
of
Labor
Statistics
(BLS)
on
Thursday.
On
a
monthly
basis,
the
CPI
declined
0.1%
MoM
in
June,
the
lowest
level
in
more
than
three
years. -
The
annual
core
CPI,
which
excludes
volatile
food
and
energy
prices,
climbed
3.3%
YoY
in
June,
below
the
forecast
and
May’s
increase
of
3.4%.
The
figure
was
up
0.1%
on
a
monthly
basis. -
Federal
Reserve
Bank
of
Chicago
President
Austan
Goolsbee
expressed
on
Friday
that
the
recent
inflation
report
was
“excellent,”
adding
that
the
reports
provided
proof
that
the
central
bank
is
on
track
to
meet
its
2%
target. -
Federal
Reserve
Bank
of
San
Francisco
President
Mary
Daly
acknowledged
improving
inflation
figures
on
Thursday.
Daly
expects
further
easing
in
both
price
pressures
and
the
labor
market
to
warrant
interest
rate
cuts. -
Financial
markets
saw
nearly
85%
odds
of
a
Fed
rate
cut
in
September,
up
from
the
70%
chance
seen
before
the
CPI
report.
Two
rate
cuts
are
anticipated
this
year.
Technical
analysis:
USD/INR
goes
into
consolidation
in
the
near
term
The
Indian
Rupee
trades
weaker
on
the
day.
According
to
the
daily
chart,
the
USD/INR
pair
keeps
the
bullish
vibe
unchanged
above
the
key
100-day
Exponential
Moving
Average
(EMA).
The
14-day
Relative
Strength
Index
(RSI)
holds
in
bullish
territory
above
the
50-midline,
suggesting
that
the
EMA
support
is
likely
to
hold
rather
than
break.
However,
in
the
shorter
term,
the
pair
has
remained
inside
its
month-long
range
since
March
21.
Any
follow-through
buying
above
the
upper
boundary
of
the
trading
range
at
83.65
could
lead
to
a
retest
of
the
all-time
high
of
83.75.
Extended
gains
will
see
a
rally
to
the
84.00
psychological
barrier.
Sustained
trading
below
the
100-day
EMA
at
83.37
could
pave
the
way
to
the
83.00
round
mark.
The
next
downside
target
is
seen
at
82.82,
a
low
of
January
12.
US
Dollar
price
today
The
table
below
shows
the
percentage
change
of
US
Dollar
(USD)
against
listed
major
currencies
today.
US
Dollar
was
the
strongest
against
the
Japanese
Yen.
|
USD |
EUR |
GBP |
CAD |
AUD |
JPY |
NZD |
CHF |
|
|
USD |
0.07% | 0.14% | 0.06% | 0.15% | 0.71% | 0.02% | 0.09% | |
|
EUR |
-0.07% | 0.05% | -0.02% | 0.11% | 0.56% | -0.06% | 0.00% | |
|
GBP |
-0.14% | -0.07% | -0.08% | 0.06% | 0.53% | -0.11% | -0.05% | |
|
CAD |
-0.05% | 0.01% | 0.08% | 0.12% | 0.61% | -0.03% | 0.03% | |
|
AUD |
-0.15% | -0.12% | -0.06% | -0.14% | 0.47% | -0.17% | -0.13% | |
|
JPY |
-0.72% | -0.68% | -0.55% | -0.64% | -0.51% | -0.64% | -0.57% | |
|
NZD |
-0.04% | 0.04% | 0.11% | 0.03% | 0.16% | 0.61% | 0.05% | |
|
CHF |
-0.09% | -0.01% | 0.05% | -0.02% | 0.11% | 0.56% | -0.05% |
The
heat
map
shows
percentage
changes
of
major
currencies
against
each
other.
The
base
currency
is
picked
from
the
left
column,
while
the
quote
currency
is
picked
from
the
top
row.
For
example,
if
you
pick
the
Euro
from
the
left
column
and
move
along
the
horizontal
line
to
the
Japanese
Yen,
the
percentage
change
displayed
in
the
box
will
represent
EUR
(base)/JPY
(quote).
Indian
Rupee
FAQs
The
Indian
Rupee
(INR)
is
one
of
the
most
sensitive
currencies
to
external
factors.
The
price
of
Crude
Oil
(the
country
is
highly
dependent
on
imported
Oil),
the
value
of
the
US
Dollar
–
most
trade
is
conducted
in
USD
–
and
the
level
of
foreign
investment,
are
all
influential.
Direct
intervention
by
the
Reserve
Bank
of
India
(RBI)
in
FX
markets
to
keep
the
exchange
rate
stable,
as
well
as
the
level
of
interest
rates
set
by
the
RBI,
are
further
major
influencing
factors
on
the
Rupee.
The
Reserve
Bank
of
India
(RBI)
actively
intervenes
in
forex
markets
to
maintain
a
stable
exchange
rate,
to
help
facilitate
trade.
In
addition,
the
RBI
tries
to
maintain
the
inflation
rate
at
its
4%
target
by
adjusting
interest
rates.
Higher
interest
rates
usually
strengthen
the
Rupee.
This
is
due
to
the
role
of
the
‘carry
trade’
in
which
investors
borrow
in
countries
with
lower
interest
rates
so
as
to
place
their
money
in
countries’
offering
relatively
higher
interest
rates
and
profit
from
the
difference.
Macroeconomic
factors
that
influence
the
value
of
the
Rupee
include
inflation,
interest
rates,
the
economic
growth
rate
(GDP),
the
balance
of
trade,
and
inflows
from
foreign
investment.
A
higher
growth
rate
can
lead
to
more
overseas
investment,
pushing
up
demand
for
the
Rupee.
A
less
negative
balance
of
trade
will
eventually
lead
to
a
stronger
Rupee.
Higher
interest
rates,
especially
real
rates
(interest
rates
less
inflation)
are
also
positive
for
the
Rupee.
A
risk-on
environment
can
lead
to
greater
inflows
of
Foreign
Direct
and
Indirect
Investment
(FDI
and
FII),
which
also
benefit
the
Rupee.
Higher
inflation,
particularly,
if
it
is
comparatively
higher
than
India’s
peers,
is
generally
negative
for
the
currency
as
it
reflects
devaluation
through
oversupply.
Inflation
also
increases
the
cost
of
exports,
leading
to
more
Rupees
being
sold
to
purchase
foreign
imports,
which
is
Rupee-negative.
At
the
same
time,
higher
inflation
usually
leads
to
the
Reserve
Bank
of
India
(RBI)
raising
interest
rates
and
this
can
be
positive
for
the
Rupee,
due
to
increased
demand
from
international
investors.
The
opposite
effect
is
true
of
lower
inflation.
WTI hovers around $82.00 as soft inflation raises the odds of Fed rate cuts
401900 July 12, 2024 10:39 FXStreet Market News
-
WTI
price
receives
support
as
easing
inflation
data
has
heightened
expectations
of
a
Fed
rate
cut
in
September. -
The
US
Consumer
Price
Index
declined
by
0.1%
MoM
in
June,
marking
its
lowest
level
in
more
than
three
years. -
US
gasoline
demand
reached
9.4
million
barrels
per
day,
the
highest
level
for
the
Independence
Day
holiday
week
since
2019.
West
Texas
Intermediate
(WTI)
Oil
price
trades
around
$81.80
per
barrel
during
Asian
hours
on
Friday.
Crude
Oil
prices
have
found
support
as
softer-than-expected
US
Consumer
Price
Index
(CPI)
data
for
June
has
heightened
expectations
of
a
potential
Federal
Reserve
(Fed)
rate
cut
in
September.
Lower
borrowing
costs
support
the
US
economy,
the
largest
Oil
consumer
in
the
world,
which
in
turn
boosts
crude
Oil
demand.
The
US
Consumer
Price
Index
(CPI)
declined
by
0.1%
month-over-month
in
June,
marking
its
lowest
level
in
more
than
three
years.
The
core
CPI,
which
excludes
volatile
food
and
energy
prices,
rose
by
3.3%
year-over-year
in
June,
compared
to
May’s
increase
of
3.4%
and
the
same
expectation.
Meanwhile,
the
core
CPI
increased
by
0.1%
month-over-month,
against
the
expected
and
prior
rise
of
0.2%.
Federal
Reserve
Bank
of
Chicago
President
Austan
Goolsbee
said
on
Thursday
that
the
US
economy
appears
to
be
on
track
to
achieve
2%
inflation.
This
suggests
Goolsbee
is
gaining
confidence
that
the
time
for
cutting
interest
rates
may
soon
be
approaching.
He
also
stated
“My
view
is,
this
is
what
the
path
to
2%
looks
like,”
according
to
Reuters.
According
to
government
data
cited
by
Reuters,
US
gasoline
demand
reached
9.4
million
barrels
per
day
(bpd)
in
the
week
ending
July
5,
the
highest
level
for
the
Independence
Day
holiday
week
since
2019.
Jet
fuel
demand,
on
a
four-week
average
basis,
was
at
its
strongest
since
January
2020.
This
robust
fuel
demand
has
prompted
US
refineries
to
increase
activity
and
draw
from
crude
Oil
stockpiles,
thereby
supporting
prices.
WTI
Oil
FAQs
WTI
Oil
is
a
type
of
Crude
Oil
sold
on
international
markets.
The
WTI
stands
for
West
Texas
Intermediate,
one
of
three
major
types
including
Brent
and
Dubai
Crude.
WTI
is
also
referred
to
as
“light”
and
“sweet”
because
of
its
relatively
low
gravity
and
sulfur
content
respectively.
It
is
considered
a
high
quality
Oil
that
is
easily
refined.
It
is
sourced
in
the
United
States
and
distributed
via
the
Cushing
hub,
which
is
considered
“The
Pipeline
Crossroads
of
the
World”.
It
is
a
benchmark
for
the
Oil
market
and
WTI
price
is
frequently
quoted
in
the
media.
Like
all
assets,
supply
and
demand
are
the
key
drivers
of
WTI
Oil
price.
As
such,
global
growth
can
be
a
driver
of
increased
demand
and
vice
versa
for
weak
global
growth.
Political
instability,
wars,
and
sanctions
can
disrupt
supply
and
impact
prices.
The
decisions
of
OPEC,
a
group
of
major
Oil-producing
countries,
is
another
key
driver
of
price.
The
value
of
the
US
Dollar
influences
the
price
of
WTI
Crude
Oil,
since
Oil
is
predominantly
traded
in
US
Dollars,
thus
a
weaker
US
Dollar
can
make
Oil
more
affordable
and
vice
versa.
The
weekly
Oil
inventory
reports
published
by
the
American
Petroleum
Institute
(API)
and
the
Energy
Information
Agency
(EIA)
impact
the
price
of
WTI
Oil.
Changes
in
inventories
reflect
fluctuating
supply
and
demand.
If
the
data
shows
a
drop
in
inventories
it
can
indicate
increased
demand,
pushing
up
Oil
price.
Higher
inventories
can
reflect
increased
supply,
pushing
down
prices.
API’s
report
is
published
every
Tuesday
and
EIA’s
the
day
after.
Their
results
are
usually
similar,
falling
within
1%
of
each
other
75%
of
the
time.
The
EIA
data
is
considered
more
reliable,
since
it
is
a
government
agency.
OPEC
(Organization
of
the
Petroleum
Exporting
Countries)
is
a
group
of
13
Oil-producing
nations
who
collectively
decide
production
quotas
for
member
countries
at
twice-yearly
meetings.
Their
decisions
often
impact
WTI
Oil
prices.
When
OPEC
decides
to
lower
quotas,
it
can
tighten
supply,
pushing
up
Oil
prices.
When
OPEC
increases
production,
it
has
the
opposite
effect.
OPEC+
refers
to
an
expanded
group
that
includes
ten
extra
non-OPEC
members,
the
most
notable
of
which
is
Russia.
General Market Analysis 12/07/2024
401898 July 12, 2024 10:14 ICMarkets Market News
Markets Rocked After CPI Miss – Nasdaq Down 2%
US CPI data came in lower than expected yesterday and markets reacted strongly as hopes for a September rate cut increased. US tech stocks to a big hit with the Nasdaq dropping 1.95% on the day, followed by the S&P which lost 0.88% while the Dow managed a slight 0.08% increase. US treasury yields dropped lower, the benchmark 10-year losing 7.6 basis points to trade back to 4.204% and the more rate sensitive 2-year losing 12.6 basis points to fall back to 4.506%. Currencies also saw big moves as the greenback took a beating, the dollar index losing around 0.6% on the day with UsdJpy notably dropping over 2% on the data. Oil prices rose in line with the weakening dollar, Brent up 0.4% to $85.40 a barrel and WTI up 0.6% to $82.66. Gold was another big mover on the day, breaking through resistance levels to add another 1.8% and move back towards all-time highs, it closed the NY session at $2,422 an ounce.
Gold on the Move to Record Highs
Last night’s lower than expected CPI data release in the US led to another strong round of dollar selling across financial markets and Gold was once again one of the main recipients of the greenback’s downfall. The precious metal gained another 1.8% during the New York session and that comes on the back of a strong upward trend throughout the month. The stars are now aligning for a move to challenge May’s record all-time highs as a greater chance of rate cuts in the US combine with a large dose of global political uncertainty to pull more investors into long gold positions. From a technical perspective, the breakthrough of both trendline resistance and the monthly high now opens the way for a move back to high just under $2,450 and a move through there pushes it into fresh territory.
Quiet Calendar Day Ahead, but Volatility to Remain High
Traders are expecting to see further volatility across financial markets today even with a limited macroeconomic risk event calendar. Excessive moves in the Yen have Asian FX traders on their toes already in early trading this morning and expectations are for more moves in the sessions ahead. There is very little on the calendar in both of the first two trading sessions today, but we have further inflation numbers in the US later on when the PPI data sets are released. They are not expected to have anywhere near the impact of last nights CPI data but will still be a factor that investors look to for the overall inflation story. The Preliminary University of Michigan Consumer Sentiment and Inflation Expectations are out later in the day as well, but overall most investors are expecting yesterday’s CPI print to continue to dominate market sentiment into the weekend.
The post General Market Analysis 12/07/2024 first appeared on IC Markets | Official Blog.
Japan’s Suzuki: Rapid FX moves undesirable
401897 July 12, 2024 10:14 FXStreet Market News
Gold
price
drifts
lower
during
the
Asian
session
on
Friday
and
erodes
a
part
of
the
previous
day’s
softer
US
CPI-inspired
strong
move
up
to
the
$2,424-2,425
region.
A
modest
uptick
in
the
US
Treasury
bond
yields
assists
the
US
Dollar
in
attracting
some
buyers.
This,
along
with
a
positive
risk
tone,
undermines
the
yellow
metal.
Australian Dollar pulls back from six-month highs
401895 July 12, 2024 10:14 FXStreet Market News
-
The
Australian
Dollar
declines
possibly
due
to
risk
aversion
on
Friday. -
The
AUD
may
limit
its
downside
due
to
rising
expectations
of
the
RBA
maintaining
a
hawkish
stance. -
Fed’s
Goolsbee
stated
that
the
US
economy
appears
to
be
on
track
to
achieve
2%
inflation.
The
Australian
Dollar
(AUD)
continues
to
retreat
on
Friday
after
reaching
a
six-month
high
of
0.6798
in
the
previous
session.
The
AUD/USD
pair
found
support
as
the
US
Dollar
(USD)
weakened
following
softer-than-expected
US
Consumer
Price
Index
(CPI)
data
in
June.
This
has
increased
expectations
of
a
potential
Federal
Reserve
(Fed)
rate
cut
in
September.
The
AUD
may
limit
its
downside
as
speculation
grows
that
the
Reserve
Bank
of
Australia
(RBA)
might
delay
the
global
rate-cutting
cycle
or
even
raise
interest
rates
again.
Persistently
high
inflation
in
Australia
prompts the
RBA
to
maintain
a
hawkish
stance.
The
US
Dollar
(USD)
remains
subdued
amid
lower
US
Treasury
yields.
Investors
in
the
fed
funds
futures
market
have
increased
their
bets
on
a
rate
cut
by
the
US
Federal
Reserve
starting
in
September.
According
to
CME
Group’s
FedWatch
Tool,
markets
are
now
pricing
in
nearly
89%
odds
of
a
rate
cut
at
the
September
Fed
meeting,
up
from
73%
on
Wednesday.
Daily
Digest
Market
Movers:
Australian
Dollar
edges
lower
due
to
risk
aversion
-
Federal
Reserve
Bank
of
Chicago
President
Austan
Goolsbee
said
on
Thursday
that
the
US
economy
appears
to
be
on
track
to
achieve
2%
inflation.
This
suggests
Goolsbee
is
gaining
confidence
that
the
time
for
cutting
interest
rates
may
soon
be
approaching.
He
also
stated
“My
view
is,
this
is
what
the
path
to
2%
looks
like,”
Goolsbee
said,
according
to
Reuters. -
The
US
Consumer
Price
Index
(CPI)
declined
by
0.1%
month-over-month
in
June,
marking
its
lowest
level
in
more
than
three
years.
On
a
yearly
basis,
the
headline
CPI
increased
by
3.0%
in
June,
down
from
a
3.3%
rise
in
May
and
below
the
market
consensus
of
3.1%. -
The
core
CPI,
which
excludes
volatile
food
and
energy
prices,
rose
by
3.3%
year-over-year
in
June,
compared
to
May’s
increase
of
3.4%
and
the
same
expectation.
Meanwhile,
the
core
CPI
increased
by
0.1%
month-over-month,
against
the
expected
and
prior
reading
of
0.2%. -
Australia’s
Consumer
Inflation
Expectations
for
July
came
in
at
4.3%,
slightly
lower
than
the
previous
reading
of
4.4%. -
Federal
Reserve
Board
Governor
Lisa
Cook
stated
on
Wednesday,
“My
baseline
forecast…is
that
inflation
will
continue
to
move
toward
target
over
time,
without
much
further
rise
in
unemployment,”
according
to
Reuters. -
On
Wednesday,
Fed
Chair
Jerome
Powell
emphasized
the
need
to
closely
monitor
the
labor
market,
noting
that
it
has
significantly
deteriorated.
Additionally,
Powell
expressed
confidence
in
the
downward
movement
of
inflation. -
On
Tuesday,
Fed
Chair
Jerome
Powell
answered
questions
before
the
Senate
Banking
Committee
on
the
first
day
of
his
Congressional
testimony.
Powell
stated,
“More
good
data
would
strengthen
our
confidence
in
inflation.”
He
emphasized
that
a
“policy
rate
cut
is
inappropriate
until
the
Fed
gains
greater
confidence
that
inflation
is
headed
sustainably
toward
2%.”
He
also
noted
that
“first-quarter
data
did
not
support
the
greater
confidence
in
the
inflation
path
that
the
Fed
needs
to
cut
rates.”
Technical
Analysis:
Australian
Dollar
hovers
around
0.6750
The
Australian
Dollar
trades
around
0.6760
on
Friday.
The
analysis
of
the
daily
chart
shows
that
the
AUD/USD
pair
consolidates
within
an
ascending
channel,
indicating
a
bullish
bias.
Furthermore,
the
14-day
Relative
Strength
Index
(RSI)
remains
above
the
50
level,
confirming
the
ongoing
bullish
momentum.
The
AUD/USD
pair
may
retest
the
upper
boundary
of
the
ascending
channel
at
approximately
0.6790
and
the
psychological
level
of
0.6800.
On
the
downside,
the
AUD/USD
pair
may
find
support
around
the
50-day
Exponential
Moving
Average
(EMA)
at
0.6698.
Further
support
appears
around
the
lower
boundary
of
the
ascending
channel
at
0.6680.
A
break
below
this
level
could
push
the
pair
toward
the
throwback
support
around
0.6590.
AUD/USD:
Daily
Chart
Australian
Dollar
PRICE
Today
The
table
below
shows
the
percentage
change
of
Australian
Dollar
(AUD)
against
listed
major
currencies
today.
Australian
Dollar
was
the
weakest
against
the
US
Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | 0.06% | 0.22% | 0.00% | 0.04% | 0.15% | 0.02% | |
| EUR | -0.00% | 0.06% | 0.26% | -0.00% | 0.02% | 0.14% | -0.01% | |
| GBP | -0.06% | -0.06% | 0.18% | -0.07% | -0.05% | 0.07% | -0.08% | |
| JPY | -0.22% | -0.26% | -0.18% | -0.26% | -0.20% | -0.09% | -0.23% | |
| CAD | -0.00% | 0.00% | 0.07% | 0.26% | 0.03% | 0.14% | -0.01% | |
| AUD | -0.04% | -0.02% | 0.05% | 0.20% | -0.03% | 0.12% | -0.03% | |
| NZD | -0.15% | -0.14% | -0.07% | 0.09% | -0.14% | -0.12% | -0.14% | |
| CHF | -0.02% | 0.00% | 0.08% | 0.23% | 0.00% | 0.03% | 0.14% |
The
heat
map
shows
percentage
changes
of
major
currencies
against
each
other.
The
base
currency
is
picked
from
the
left
column,
while
the
quote
currency
is
picked
from
the
top
row.
For
example,
if
you
pick
the
Australian
Dollar
from
the
left
column
and
move
along
the
horizontal
line
to
the
US
Dollar,
the
percentage
change
displayed
in
the
box
will
represent
AUD
(base)/USD
(quote).
RBA
FAQs
The
Reserve
Bank
of
Australia
(RBA)
sets
interest
rates
and
manages
monetary
policy
for
Australia.
Decisions
are
made
by
a
board
of
governors
at
11
meetings
a
year
and
ad
hoc
emergency
meetings
as
required.
The
RBA’s
primary
mandate
is
to
maintain
price
stability,
which
means
an
inflation
rate
of
2-3%,
but
also
“..to
contribute
to
the
stability
of
the
currency,
full
employment,
and
the
economic
prosperity
and
welfare
of
the
Australian
people.”
Its
main
tool
for
achieving
this
is
by
raising
or
lowering
interest
rates.
Relatively
high
interest
rates
will
strengthen
the
Australian
Dollar
(AUD)
and
vice
versa.
Other
RBA
tools
include
quantitative
easing
and
tightening.
While
inflation
had
always
traditionally
been
thought
of
as
a
negative
factor
for
currencies
since
it
lowers
the
value
of
money
in
general,
the
opposite
has
actually
been
the
case
in
modern
times
with
the
relaxation
of
cross-border
capital
controls.
Moderately
higher
inflation
now
tends
to
lead
central
banks
to
put
up
their
interest
rates,
which
in
turn
has
the
effect
of
attracting
more
capital
inflows
from
global
investors
seeking
a
lucrative
place
to
keep
their
money.
This
increases
demand
for
the
local
currency,
which
in
the
case
of
Australia
is
the
Aussie
Dollar.
Macroeconomic
data
gauges
the
health
of
an
economy
and
can
have
an
impact
on
the
value
of
its
currency.
Investors
prefer
to
invest
their
capital
in
economies
that
are
safe
and
growing
rather
than
precarious
and
shrinking.
Greater
capital
inflows
increase
the
aggregate
demand
and
value
of
the
domestic
currency.
Classic
indicators,
such
as
GDP,
Manufacturing
and
Services
PMIs,
employment,
and
consumer
sentiment
surveys
can
influence
AUD.
A
strong
economy
may
encourage
the
Reserve
Bank
of
Australia
to
put
up
interest
rates,
also
supporting
AUD.
Quantitative
Easing
(QE)
is
a
tool
used
in
extreme
situations
when
lowering
interest
rates
is
not
enough
to
restore
the
flow
of
credit
in
the
economy.
QE
is
the
process
by
which
the
Reserve
Bank
of
Australia
(RBA)
prints
Australian
Dollars
(AUD)
for
the
purpose
of
buying
assets
–
usually
government
or
corporate
bonds
–
from
financial
institutions,
thereby
providing
them
with
much-needed
liquidity.
QE
usually
results
in
a
weaker
AUD.
Quantitative
tightening
(QT)
is
the
reverse
of
QE.
It
is
undertaken
after
QE
when
an
economic
recovery
is
underway
and
inflation
starts
rising.
Whilst
in
QE
the
Reserve
Bank
of
Australia
(RBA)
purchases
government
and
corporate
bonds
from
financial
institutions
to
provide
them
with
liquidity,
in
QT
the
RBA
stops
buying
more
assets,
and
stops
reinvesting
the
principal
maturing
on
the
bonds
it
already
holds.
It
would
be
positive
(or
bullish)
for
the
Australian
Dollar.
Japan’s Hayashi: Ready to take all possible means on forex
401893 July 12, 2024 09:39 FXStreet Market News
Japanese
Chief
Cabinet
Secretary
Yoshimasa Hayashi
said
on
Friday
that
he
is
“ready
to
take
all
possible
means
on
forex.”
Additional
quotes
Full ArticleNo
comment
on
FX
intervention.Won’t
comment
on
forex
levels.Important
for
currencies
to
move
in
stable
manner
reflecting
fundamentals.Rapid
FX
moves
undesirable.Closely
watching
FX
moves.Up
to
the
Bank
of
Japan
(BoJ)
to
decide
details
of
monetary
policy.Expect
BoJ
to
take
appropriate
monetary
policy
to
sustainably,
stably
achieve
2%
price
target.Will
work
closely
with
the
BoJ.
Fed’s Goolsbee: CPI data indicate inflation on 2% path
401892 July 12, 2024 09:39 FXStreet Market News
Federal
Reserve
Bank
of
Chicago
President
Austan
Goolsbee
on
Friday
marked
the
latest
inflation
report
as
“excellent.”
Goolsbee
further
stated
that
the
reports
prove
that
the
central
bank
is
on
track
to
meet
its
2%
target.
Key
quotes
June
CPI
report
‘excellent,’
improvement
on
shelter
inflation
‘profoundly
encouraging’.I
think
this
is
what
the
path
to
2%
looks
like.As
inflation
falls,
leaving
Fed
policy
rate
steady
means
Fed
is
tightening
policy.The
reason
to
tighten
policy
would
be
if
economy
is
overheating.We
are
not
overheating.Labor
market
is
cooling,
still
strong.It
doesn’t
feel
like
the
beginning
of
a
recession.Financial
conditions
are
pretty
restrictive.I
don’t
like
tying
our
hands
on
policy
decisions.Need
to
decide
when
to
cut
rates,
not
trying
to
figure
out
a
rate
path
for
next
seven
months.
Market
reaction
The US
Dollar Index
(DXY)
is
trading
unchanged
on
the
day
at
104.45,
as
of
writing.
Fed
FAQs
Monetary
policy
in
the
US
is
shaped
by
the
Federal
Reserve
(Fed).
The
Fed
has
two
mandates:
to
achieve
price
stability
and
foster
full
employment.
Its
primary
tool
to
achieve
these
goals
is
by
adjusting
interest
rates.
When
prices
are
rising
too
quickly
and
inflation
is
above
the
Fed’s
2%
target,
it
raises
interest
rates,
increasing
borrowing
costs
throughout
the
economy.
This
results
in
a
stronger
US
Dollar
(USD)
as
it
makes
the
US
a
more
attractive
place
for
international
investors
to
park
their
money.
When
inflation
falls
below
2%
or
the
Unemployment
Rate
is
too
high,
the
Fed
may
lower
interest
rates
to
encourage
borrowing,
which
weighs
on
the
Greenback.
The
Federal
Reserve
(Fed)
holds
eight
policy
meetings
a
year,
where
the
Federal
Open
Market
Committee
(FOMC)
assesses
economic
conditions
and
makes
monetary
policy
decisions.
The
FOMC
is
attended
by
twelve
Fed
officials
–
the
seven
members
of
the
Board
of
Governors,
the
president
of
the
Federal
Reserve
Bank
of
New
York,
and
four
of
the
remaining
eleven
regional
Reserve
Bank
presidents,
who
serve
one-year
terms
on
a
rotating
basis.
In
extreme
situations,
the
Federal
Reserve
may
resort
to
a
policy
named
Quantitative
Easing
(QE).
QE
is
the
process
by
which
the
Fed
substantially
increases
the
flow
of
credit
in
a
stuck
financial
system.
It
is
a
non-standard
policy
measure
used
during
crises
or
when
inflation
is
extremely
low.
It
was
the
Fed’s
weapon
of
choice
during
the
Great
Financial
Crisis
in
2008.
It
involves
the
Fed
printing
more
Dollars
and
using
them
to
buy
high
grade
bonds
from
financial
institutions.
QE
usually
weakens
the
US
Dollar.
Quantitative
tightening
(QT)
is
the
reverse
process
of
QE,
whereby
the
Federal
Reserve
stops
buying
bonds
from
financial
institutions
and
does
not
reinvest
the
principal
from
the
bonds
it
holds
maturing,
to
purchase
new
bonds.
It
is
usually
positive
for
the
value
of
the
US
Dollar.