Daily Market Update

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Jun 24, 2021 | Currency Market Analysis

Global Themes

PMIs boost sentiment as Fed rumbles on


• AUD boosted by commodity rebound
• USD still driven by Fed talk
• BoE due tonight

Copper stages comeback on US, German growth

The AUD was higher overnight with the focus for commodity currencies on yesterday’s strong PMI numbers.

The PMI reports, which measure activity from purchasing mangers and are seen as the most up-to-date reading of the global economy, remained strong, with manufacturing and services activity in the US and Germany the standout overnight.

The news boosted commodity markets with copper, most notably, up 2.1% overnight with the industrial metal now up 4.7% from recent lows.

Fed still in focus

The focus on commodity markets helped distract AUD traders from ongoing rumblings from the US Federal Reserve.

In most other markets, the US dollar was higher, after Fed official Raphael Bostic said he feared inflation was likely to remain problematic in the near term.

The AUDUSD rebounded to one-week highs while the AUD climbed versus most other currencies, with big gains seen versus the euro and Japanese yen.

BoE due

The focus on central banks remains tonight with the Bank of England due at 9.00pm AEST.

Elsewhere, a series of key US data releases will also be released, with durable goods and the GDP price index tonight, and the critical personal consumption and expenditure (PCE) inflation measure released on Friday.

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