PMI data across Asia, Europe and the USA was heavily negative, dampening market enthusiasm. Asian markets were boosted by the continued re-opening of China, but the impact of these restrictive closures, has had an impact. European markets were down following the sharp contractions in Services and Composite PMI data, while EU retail sales contracted 1.8%. US markets were also hit by a dramatic contraction in PMI data, but this was heavily contradicted by the ISM Non-Manufacturing number? Market now see economic data through the prism of the Fed and stronger data suggests the Fed will continue to raise rates, in the war on inflation. The USD rallied and the EUR drifted back to 1.0500, while the Yen slipped to 136.50.
Commodity currencies were damaged by the weak global economic data from Europe and the US, with the AUD falling to 0.6700 and the NZD plunging to 0.6300. Local attention will turn to the RBA and speculation as to how the will react to current economic conditions. The RBA is expected to raise rates by a further 25 basis points, continuing their very controlled and reticent approach to inflation.