CHF/JPY Exchange rate

AUD/USD is advancing toward 0.6700, picking up fresh bids on the hawkish surprise delivered by the RBA at its June policy meeting. The RBA hiked rates by another 25 bps to 4.10%, citing that some additional tightening may be needed. Focus shifts to RBA Lowe's speech. 

EUR/USD is trading modestly flat above 1.0700, finding support from a broad US Dollar weakness and the hawkish ECB expectations ahead of the mid-tier EU data this Tuesday. The market mood remains cautious, limiting the upside in the major. 

Gold price aptly portrays the sluggish markets heading into Tuesday’s European session, after an indecisive week. The XAU/USD highlights a lack of major data/events on the economic calendar, as well as mixed concerns about the Federal Reserve’s (Fed) moves and the diplomatic ties between the US and China.

Although there are no major macroeconomic events this week, investors can expect massive volatility on a daily basis. The reasoning behind this outlook is that Apple will be conducting the 2023 Apple Worldwide Developers Conference (WWDC) on June 5.

Given that investors have very strong recession priors and it's well understood the services sectors are driving the bulk of the post-Covid cross-asset recovery, the negative services print was viewed a tad pessimistic on a multi-cross-asset level as the summer lull beckons.