Market Update – June 6 – RBA Surprises, Binance Charged, Crypto & USD Weaker

By
Analysis Team
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The USDIndex sinks below  104.00 following weaker ISM Services PMI’s Stocks were mixed, Asia traded mixed following the subdued US handover and weak data, the RBA delivered a second consecutive surprise rate hike taking rates to 4.1% – the highest level since April 2012 AND the bank also left the door open to additional hikes, as inflation remains sticky & more tightening may be necessary. AUD rallied lifting NZD too.  The US SEC is to sue Binance and founder Zhao over ‘web of deception’, Crypto’s sink. Oil markets continue to decline from the initial OPEC+ announcement rally yesterday. 
Overnight –  Weak Japanese personal spending data, weak UK retail sales data & German manufacturing orders dropped -0.4% m/m. Expectations had been for a sizeable bounce after the -10.9% m/m contraction in March, but instead orders declined for another month.
  • FX – USDIndex has fallen to 103.75, in a wide arc around 104.00. EUR holds 1.0700 and remains capped by 1.0750. JPY cannot hold the 140.00 handle & is below 139.50, Cable rallies from 1.2400 to the next resistance at the  1.2450 handle.  
  • Stocks – Wall Street traded mixed all day closing lower (-0.09% to -0.59%). NINTC  2-4.63%, DELL -3.79%.  US500 (-0.20%) closed -8.58 pts at 4273, FUTS are trading at 4276, and an eighth day above the key resistance at 4175 and a fourth day north of 4200.

  • Commodities – USOil – Futures declined into $71.25 zone from $74.25 following the OPEC+ production cut announcement on Sunday.  Gold – moved lower again, to $1937, yesterday but has since recovered beyond the key $1950 handle, to $1963 highs today.  
  • Cryptocurrencies–BTC plunged to $25.3k lows following Binance news.   

Today – EZ Retail Sales, Canadian IVEY PMI.

Biggest FX Mover @ (06:30 GMT) AUDUSD (+0.81%) Following the RBA surprise announcement & outlook rallied over 0.6680. MA’s aligning higher, MACD histogram & signal line positive & rising, RSI 70.78 & OB, H1 ATR 0.00144, Daily ATR 0.00633.

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Stuart Cowell

Head Market Analyst

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