Daily Market Commentary 28th June 2023

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Markets rebounded strongly overnight, with stronger than expected data out of the US. US New Home Sales jumped 12.2%, while Home Prices turned positive for the month of April, although still remaining negative for the year. US Consumer Confidence also jumped into positive territory, while Durable Goods Orders jumped 1.7%. The positive economic news allowed US equity market to sharply reverse recent losses, jumping back strongly into positive territory. This was enough to allow US Bond Yields to settle and the US Dollar to soften. The EUR rallied back to 1.0950, while the GBP bounced back above 1.2700.

The positive economic data and the softer reserve allowed the commodity currencies to stabilise, but they remain under pressure, as recessionary demand for commodities and prices will continue to deteriorate.  The AUD trades above 0.6650, while the NZD looks to hold 0.6150. Attention will turn to US GDP growth number and European inflation, while locally NZ markets will look closely at the Business Confidence data, set to be released later today.

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