- The renewed threat of China tariffs were brushed aside to see equity markets broadly higher, with Chinese benchmark indices leading the way. Although we’d stop short of calling it a risk-on session as sentiment remains fragile.
- JPY and EUR are marginal leaders among FX majors, whilst NZD and JPY are the weakest. GBP/NZD and NZD/CAD are today’s biggest movers.
- Australian business confidence jumped to its highest level since September, following the federal elections and RBA cut. However, conditions slumped to its lowest level since September 2014. Hitting 1 versus 3 expected, it’s just two units away from flipping to pessimistic.
- BOE’s Saunders stated earlier in the session that BOE will ‘probably’ need to return to a neutral policy stance sooner than markets expect, and they don’t necessarily have to hold rates until all Brexit certainties are resolved.
Daily FX Technical Trend Bias/Key Levels (Tues 11 Jun)
NZD/CAD Could Be Gearing Up For A 300 Pip-Slide
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