| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 01:30 | Australia | Unemployment rate | May | 4.1% | 4% | 4% |
| 01:30 | Australia | Changing the number of employed | May | 37.4 | 27.5 | 39.7 |
During today's Asian trading, the US dollar rose moderately against major currencies, partially offsetting yesterday's drop caused by weaker-than-expected US inflation data.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.18% to 104.83. Yesterday, the index fell by 0.51%, as the report showed that in May the overall consumer price index remained unchanged on a monthly basis, while economists had expected an increase of 0.1%. Core CPI rose by 0.2%, which was also lower than economists' forecasts (+0.3%). In the 12 months to May, the CPI rose by 3.3% after an increase of 3.4% in April. Economists had predicted that the index would grow by 3.4% year-on-year. The dollar was also influenced by the results of the Fed meeting. The central bank, as expected, kept the rate at 5,25%, but policymakers' median projection for the number of cuts this year fell to just one, from three in March. Despite the Fed's projections, markets stuck with pricing in almost two 0,25% rate cuts this year. According to the CME FedWatch Tool, markets see a 8.3% probability of a 25 basis point rate cut at the Fed meeting in July, a 61.5% probability of a rate cut in September, and a 74.2% probability of monetary policy easing in November.
The yen fell 0.3% against the US dollar, while investors are preparing for the Bank of Japan meeting, the results of which will be announced tomorrow at 03:00 GMT. Market participants do not expect the Central Bank to raise interest rates this week, but policymakers will probably announce a reduction in the monthly pace of bond purchases. Overall, the latest economic data on prices and economic growth do not suggest further tightening of monetary policy at the moment. Most likely, the Bank of Japan will want to see more data on the dynamics of prices, wages and economic growth before feeling comfortable with a new rate hike.
The Australian dollar fell by 0.25% against the US dollar, despite positive data on the Australian labor market. The Australian Bureau of Statistics (ABS) said that in May the number of employees rose by 39,700 after an increase of 37,400 in April (revised from 38,500). Economists had expected an increase of 27,500. Meanwhile, the unemployment rate decreased by 0.1% to 4.0%, which is in line with market forecasts.