Global Themes

Ten-year nears highs

The USD index climbed to the highest level in three months overnight as the US dollar’s recent comeback continued.

The US dollar has been boosted by a sharp rise in market interest rates with US bond yields leaping to multi-year highs.

Overnight, the benchmark US ten-year bond year neared 3.00% — widely seen as a major technical level. A move above this level could drive further USD gains.

Mixed messages

The USD climbed versus most key currencies with the USDCNY up 0.3% as it finished at the highest level since 23 March.

The USDHKD was lower after last week’s statement from the HKMA continued to weigh on the pair.

Australian CPI

Today, Australian first-quarter inflation numbers will be the major release, due at 9.30am.

The market is looking for a headline result of 2.0% in annual terms with the RBA’s favoured measure – the trimmed mean – forecast at 1.8%.

A weaker result could pressure the AUD to new lows.

Across the region, inflation numbers will remain in focus. In Japan, annual inflation to 31 March will be released at 1.00pm.

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