What happened in the US session?
The month-on-month US Retail Sales came in at 0.9% in April, lower than the 1.0% expected. The March result nearly tripled to 1.4% from 0.5% upon revision.
What does it mean for the Asia Session?
The antipodeans are expected to gain against the greenback following the more hawkish-than-expected turn by the RBA. Further gains are likely to be limited by the anticipated weakness in gold and the hawkish Fed.
The Dollar Index (DXY)
Key news events today
No major news events.
What can we expect from DXY today?
Fed chair Powell stated that there is broad support for the FOMC to have 50bps hikes on the table at the next two meetings. The central bank will not hesitate to raise rates until inflation comes down.
Central Bank Notes:
Next 24 Hours Bias
Strong Bullish
Gold (XAU)
Key news events today
No major news events.
What can we expect from Gold today?
The assertion by the US central bank chief on the interest rate hike path to quell inflation is likely to weigh on the non-interest-bearing precious metal.
Next 24 Hours Bias
Weak Bearish
The Australian Dollar (AUD)
Key news events today
Wage Price Index q/q, 0030 GMT
What can we expect from AUD today?
Australian central bank policymakers considered 40bps for the size of the rate increase, but most preferred 25bps. Additionally, according to the latest RBA meeting minutes, the members agreed that further hikes would most likely be required to ensure inflation returns to the target.
Central Bank Notes:
Next 24 Hours Bias
Weak Bullish
The Kiwi Dollar (NZD)
Key news events today
No major news events.
What can we expect from NZD today?
Amid a lack of first-tier data releases and currency-specific news flow, the Kiwi is still expected to follow the directional cues from the Aussie following the release of the RBA’s Monetary Policy Meeting Minutes.
Central Bank Notes:
Next 24 Hours Bias
Weak Bullish
The Japanese Yen (JPY)
Key news events today
No major news events.
What can we expect from JPY today?
The latest Japanese GDP figures saw negative growth but are still better than expected. The country’s Economic Minster expects the economy to pick up, though uncertainty remains due to the war in eastern Europe and supply-chain issues.
Central Bank Notes:
Next 24 Hours Bias
Weak Bearish