Market Update – June 7 – Stocks at 2023 Highs, Weak Chinese Data & RBA Aftermath Weigh

By
Analysis Team
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Trading Leveraged Products is risky
The USDIndex rotates around 104.00 holding its positive bias, emerging market currencies weaker (USDTRY at record high 22.7200) Stocks closed positively with US500 at a new 2023 high, Asian markets have followed through despite a big miss for Chinese exports (reflecting weak global demand) and poor import levels. Ripples from the RBA decision continue to lift AUD and CAD with a potential surprise from the BOC later today too, now more possible. The SEC decision to sue both Binance & Coinbase (-12%) hit Altcoins in particular as Bitcoin recovered from 3-month lows.  
Overnight – Weak Chinese trade data showed a 13-month low sinking over a third ($65.8b vs. $95.2b) as exports missed by 7.5% & imports data was also weaker. AUD GDP also missed (0.2% vs 0.3% & 0.6% prior), Japanese leading Indicators also declined, and more mixed German data showed a miss for Industrial Production, (0.3% vs. 0.7%) but improving from last month’s slump of -2.1%, (which was -3.4%). 
  • FX – USDIndex continues to rotate in a wide arc around 104.00. EUR holds below 1.0700, remains capped at 1.0750 and trades at 1.0675. JPY cannot hold the 140.00 handle & is below 139.50, at 139.30. Cable holds over 1.2400 with the next resistance at the 1.2450 handle.  
  • Stocks – Wall Street traded positively (0.03% to 0.36%). US500 at new 2023 high  (+0.24%) closed +10.02 pts at 4283, FUTS are trading at 4287, a ninth day above the key resistance at 4175 and a fifth day north of 4200.

  • Commodities – USOil – Futures declined into the key $70.00 zone from $74.25 following the OPEC+ production cut announcement on Sunday, before recovering to $71.30 now.  Gold – holds the key $1950 handle, and is capped at $1965 highs today.  
  • Cryptocurrencies–BTC plunged to $25.3k lows following the Binance and Coinbase news, but has recovered to $27k as Altcoins suffer more and Bitcoin gets first mover and largest market cap advantages.

Today – BoC Policy Announcement, remarks from ECB’s de Guindos, Knot & Panetta

Biggest FX Mover @ (06:30 GMT) NZDJPY (-0.46%) Rejected 85.00 again yesterday and has declined under 84.50 today. MA’s aligning lower, MACD histogram & signal line negative & declining, RSI 31.85 & declining, H1 ATR 0.103, Daily ATR 0.809.

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Stuart Cowell

Head Market Analyst

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