Market Commentary: Wednesday 26th June

Aussie dollar and Australian government bond yields have risen after CPI prints exceeded expectations coming in at 4% vs 3.8% expected YoY. This has only served to bolster the case for the RBA to continue raising rates. It has also added to some concern that the RBA was moving behind the curve and will likely keep AUD higher for longer. The Yen is also holding just below that key 160 level vs USD, a level at which Japanese authorities have previously intervened at. In China, bond levels have hit record lows as investors flock to fixed income securities amid concern over slowing economy and and expectations for further stimulus.

In the US, Nvidia climbed ~7% after a $430bn rout. Rivian surged as news of a joint venture with Volkswagen hit our screens. FedEx (which is seen as a barometer of economic growth) jumped about 15% on a bullish forecast. There is starting to be some weight put behind the opinion that the bull market we are currently in won't be derailed until we go into recession or there is a change in Fed policy from 'potential cuts' to 'actual hikes'.

In commodities, oil held a decline after an industry report signalled a small bid in US crude inventories, WTI sits at $81.25/barrel. Gold is at $2316.94/oz.

On the data front today we are light with only US new home sales!

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