Looking forward 3 June 2016

Last Friday US payrolls data far worse than expected, effecting US rate hike further expectations, Australian dollar rallied high to .7369. Market speculating when or would US raise interest rate this year.

This week Tuesday RBA monthly rate announcement, market expect remain at historically low 1.75%, last month rate cut took the market by surprise. RBA Governor Glenn Stevens said weak inflation was the main reason for this move. Stevens also noted that global economic continued to grow at a slower pace than expected. Some economist expect more room for interest rate cut this year.

UK referendum on whether to leave the EU will happen June 23, in order to avoid market risk are reduce European currency position and may shift to USD and JPY safe haven currencies. It seems  Australian dollar having some resistance on the topside.

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Posted in Foreign Exchange News.