Forex News Roundup for 6th June, 2023

My FX List
June 6, 2023
  • Asian stock markets, particularly Japan, are experiencing an upswing at the start of the week. The country’s robust economic growth after fully reopening from the Covid-19 pandemic has propelled its stock market into a bullish trend, with indices like the Nikkei 225 reaching unprecedented levels. This development is likely to capture the attention of trend traders.
  • The US Dollar is defying its prolonged bearish trend and experiencing a renewed ascent. The current trading session has primarily been influenced by the weakening Swiss Franc and the strengthening Australian Dollar. Nevertheless, trend traders are likely to seek long positions in the USD/JPY currency pair, which recently achieved a six-month high, while shorting the NZD/USD pair might be enticing, particularly below the significant psychological level at $0.6000.
  • Later today, the market will be anticipating the publication of two significant data releases. The Swiss Consumer Price Index (CPI) is projected to demonstrate a month-on-month growth of 0.3%. Additionally, the United States will unveil the ISM Services Purchasing Managers’ Index (PMI).
  • During the first quarter of 2023, Australia’s company operating profits witnessed a modest 0.5% rise. However, this growth fell short of expectations, as the anticipated increase was 1.5%. Furthermore, this figure is lower than the significant 12.7% rise observed in the previous quarter.
  • In the aftermath of the OPEC+ meeting held last weekend, Saudi Arabia revealed important decisions. Firstly, they will undertake a voluntary cut of 1 million barrels per day in their production. Secondly, the expiration of other voluntary cuts, which were originally set to expire in 2023, will now be extended until the conclusion of 2024.
  • In May, the Melbourne Institute inflation gauge experienced a substantial surge, jumping from 0.2% to 0.9%. This notable increase indicates a significant uptick in inflationary pressures.
  • The initial reading of au Jibun Bank Japan Services PMI stood at 56.3, but it has been revised downward to 55.9. Despite this revision, the figure remains higher than April’s reading of 55.4, indicating continued expansion in the services sector in Japan.
  • China’s Caixin services PMI exhibited notable improvement, climbing from 56.4 to 57.1 in May. This surpassed the expected reading of 55.2 and signifies a sustained recovery following the easing of lockdown measures.
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