USD/CAD: the pair is moving in the local corridor 1.3330–1.3250
The Canadian currency is strengthening against the background of strong macroeconomic statistics, and the key support area of 1.3330–1.3250 is currently the goal of reducing the USD/CAD pair.
Last week, data on Canada's gross domestic product (GDP) was published, which in quarterly terms amounted to 0.8%, exceeding analysts' forecast of 0.4% and the value for the previous period of 0.0%. In addition, core inflation dropped 4.3% to 4.1% per annum, which confirms the effectiveness of the monetary policy pursued by the Bank of Canada and gives investors confidence that the regulator will cope with the rise in consumer prices earlier than the US Federal Reserve. On Wednesday, the agency will announce its decision on monetary policy, and economists predict that the interest rate will remain at 4.5%. Last month, the head of the Bank of Canada, Tiff Macklem, noted that officials do not intend to adjust the indicator, but plan to take a break to assess the impact on the economy of the measures taken the day before.
- Resistance levels: 1.3660, 1.3830.
- Support levels: 1.3330, 1.3250, 1.3050.
USD/CHF: the policy of the Swiss financial authorities slowed down the May inflation dynamics
During the Asian session, the USD/CHF pair continues to decline, developing the downward momentum formed by the previous trading day, and is testing the 0.9042 level for a break down, trying to gain a foothold below the local lows of June 2.
The US dollar is under pressure due to the general improvement in market sentiment, which leads to an increase in demand for risky currencies. Investors were optimistic about the news about solving the problem of limiting the US public debt: over the weekend, President Joe Biden signed a bill to abolish this restriction for the next two years, which provides for a partial reduction in government spending. Now investors are paying attention to macroeconomic statistics and discussing possible decisions of the US Federal Reserve Bank at the upcoming meeting next week. At the moment, more than 70.0% of analysts expect that the interest rate will be left unchanged, which may limit the further growth of the dollar.
- Resistance levels: 0.9073, 0.9100, 0.9118, 0.9146.
- Support levels: 0.9030, 0.9000, 0.8960, 0.8930.
AUD/USD: RBA increased the cost of borrowing by 0.25%
The AUD/USD pair is showing steady growth, continuing the strong upward momentum formed on June 1 last Thursday. The currency pair is testing the 0.6660 level, overcoming it and updating local highs since May 19. The main factor supporting the growth of the instrument is the decision of the Reserve Bank of Australia (RBA) regarding the interest rate.
The Australian regulator raised the rate by 25 basis points to 4.10%, reaching the highest level since April 2012. In an official statement, officials noted that they made this decision in light of the continuing pressure on inflation, which, although it has reached its peak, is still at an unacceptably high level of 7.0%. That is why the RBA is seeking to tighten monetary policy in order to return inflation rates to the target range of 2.0-3.0% in the near future. At the same time, RBA officials noted that the growth of the Australian economy continues to slow down, and the situation in the labor market remains tense. They also did not rule out the possibility of further increases in the cost of borrowing, if the situation requires such measures and they will not cause significant damage to economic growth and the welfare of citizens. Recall that in April 2022, the official interest rate in Australia was set at a historic low of 0.10%, but in May the RBA began a series of rate hikes in the fight against inflation.
- Resistance levels: 0.6681, 0.6708, 0.6750, 0.6795.
- Support levels: 0.6635, 0.6590, 0.6563, 0.6530.
Gold price analysis
The asset shows steady growth, developing a strong "bullish" momentum formed last Thursday, June 1. The instrument is testing the 0.6660 mark for an upward breakdown, updating local highs from May 19. The main factor in the growth of the instrument remains the Reserve Bank of Australia (RBA) decision on the interest rate.
The Australian regulator raised the indicator by 25 basis points to 4.10% — the highest level since April 2012. In the accompanying statement, the officials noted that they made the decision against the background of the continuing pressure of inflation, which, although it has passed its peak, remains at an unacceptably high level of 7.0%. That is why the agency seeks to tighten monetary policy in order to return the indicators to the target of 2.0–3.0% in the near future. At the same time, the RBA noted that the growth of the Australian economy continues to slow down, and the situation in the labor market remains tense. Officials also do not rule out a further increase in the cost of borrowing, if the situation demands it and there will be no significant damage to economic growth and the welfare of citizens. Recall that in April 2022, the official interest rate in Australia was at a record low of 0.10%, but in May the RBA made a series of adjustments to the value to combat inflation.
- Resistance levels: 1960.00, 1971.39, 1983.20, 2000.00.
- Support levels: 1950.00, 1936.40, 1920.00, 1900.00.