Daily Digest Market Movers: AUD/JPY gains ground due to positive market sentiment

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  • Australia’s Trade Balance (MoM) showed a surplus of 5,024 million in April. The market was expecting an increase to 7,370 million from the previous 7,370 million.
  • The Building Permits released by the Australian Bureau of Statistics shows the number of permits for new construction projects rose by 1.9%, falling short of the expected 3.0% in March. The previous month’s reading was -1.9%.
  • On Thursday, the ASX 200 Index saw a modest increase following the uptick were heavyweight financial firms. This benchmark index recovers some of the losses from the previous session, following the Federal Reserve's decision to maintain interest rates.
  • On Wednesday, the AiG Australian Industry Index declined in April indicating prevailing contractionary conditions for the past twenty-four months. Additionally, the seasonally adjusted Australian Retail Sales released on Tuesday showed a drop in March, compared to the expected increase and the previous growth.
  • As reported by the Financial Review, ANZ anticipates that the RBA will commence cutting interest rates in November, following last week’s stronger-than-expected inflation data. In a similar vein, Australia's largest mortgage lender, Commonwealth Bank, has adjusted its forecast for the timing of the first interest rate cut by the RBA. They are now projecting only one cut in November.
  • Masato Kanda, Japan's top currency diplomat, refrained from confirming whether Japanese authorities had indeed intervened early Thursday in response to a significant strengthening of the JPY. Kanda mentioned that intervention data will be disclosed at the end of the month.
  • Japan’s Retail Trade increased by 1.2% year-over-year in March, which was lower than the expected increase of 2.5% and the previous increase of 4.7%. The seasonally adjusted Retail Trade (MoM) decreased by 1.2%, against the expected rise of 0.6%.
  • According to Reuters, the Sankei newspaper reported on Tuesday that Japan is considering implementing tax breaks for repatriation of corporate profits into the Yen. This measure may potentially be included in the annual mid-year policy blueprint.


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