Look ahead: US bank stress test results; German consumer confidence; Australia inflation; Micron Technology
The state of the US banking industry swings into focus with the results of the latest bank stress tests. US new home sales come ahead of this week’s key PCE reading.
Watch out for German Gfk and the monthly CPI indicator from Australia. Micron Technology is expected to report a 77.6% increase in quarterly revenue.
(Partial Video Transcript)
AUD/USD
Angeline Ong: Hello, I'm Angeline Ong and welcome to IG. This is your special “Look ahead” to Wednesday, the 26th of June. Now there's a lot of buzz out there about NVIDIA and also the overall market. So whether or not we are seeing this trigger right now in terms of the investor sentiment, whilst all that is shaking out, we do have quite a few notable opportunity events and risk events, too, in the coming session.
We've got Australia's monthly CPI indicator expectations from 3.8% year on year. We get that figure. It would be up from 3.6% the previous month. Just taking a look at the AUD/USD, because this is a really interesting chart given the carry trade currencies have really benefited amid all that Japanese yen intervention talk.
The Aussie dollar versus the US dollar: well, this cross has been rising since April. As you can see here, where I'm drawing this line here, and there's a medium term uptrend in play there. However, the pair is currently sliding slightly downwards overnight. The lift was aided by US yields which dropped. Also, it has to be said that all this might change with the PCE out later in the week and also the US consumer confidence figure out later and also the April Case-Shiller housing data.
Fed speaker updates
Remarks from Fed’s Cook and Bowman may also impact risk sentiment if they say anything at all about the Fed dialing back rate cut expectations further. Later on in the session, we've got Gfk consumer confidence figures out of Germany. Expectations are for June: -19.8. If we get that reading, it comes after -20.9 in May. So a slight improvement, but still negative territory.
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