Bullish Reversal in Indices, Australian Dollar Suffers from Lower-than-Expected Inflation
28 June 2023
In today's market overview, we start with the significant activities prompted by yesterday's stock reversal, but first, let's look at the macro calendar. Yesterday, critical data from Canada showed inflation lower than anticipated, resulting in a significant drop in the Canadian dollar. Alongside this, the CB consumer confidence from the US surpassed expectations, coming in at 109.7 instead of the predicted 103.9.
Today's calendar kicked off with surprising inflation data from Australia, which fell to 5.6%, markedly below the expected 6.1% and the prior 6.8%. Consequently, the Australian dollar is currently one of the market's weakest currencies.
Turning our attention to indices, yesterday marked a positive bullish reversal, particularly evident in Europe where bullish hammers on Monday triggered buy signals on Tuesday. American indices also experienced a notable upswing, especially the S&P 500.
Although the US dollar remains relatively steady, the Japanese yen currently displays the most significant gains. In contrast, commodities are trending lower, not due to US dollar strength, but seemingly of their own accord. Gold is eyeing monthly lows, while silver shows more resilience. However, bearish sentiment is apparent in oil, with Brent oil targeting the $72 per barrel support once again. Should the price close below this level, it could serve as a compelling long-term sell signal.
Today's schedule will conclude with speeches from prominent central bankers: ECB President Lagarde, Bank of England Governor Bailey, Bank of Japan Governor Ueda, and Fed Chairman Jerome Powell.