Matt Simpson, CFTe, MSTA
CityIndex
- In a speech today Governor Lowe said the RBA are considering cutting rates at their June meeting. Wage growth is too slow to be consistent with their inflation target and lower rates would support employment and help lift inflation toward target. Earlier in the session TheRBA minutes reiterated a case to cut rates, although it was Lowe’s comments which sent AUD lower.
- APRA announced they’re reviewing the 7.25% ‘loan buffer’ currently required for Australian loan applications, a move which could see lending rise to help support the falling housing market.
- Earlier, Fed Powell said he only sees 'moderate risks' to financial system from high levels of business borrowing. However, business debt at historic levels should cause businesses and investors to 'pause and reflect'.
- GBP and USD are the strongest majors, AUD is broadly weaker after losing the most ground against the Canadian dollar and British pound. Led by China, Asian equities were mostly higher despite a weak lead from Wall Street. Japanese shares are in the red.
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AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.