JASPER’S MARKET SQUAWK 27-06-2023

<h2>Tech Sells Off on Rather Quiet Session</h2>
<p>Safe-haven flows had a modest unravelling through the session with a softer German Ifo survey and better Dallas Fed manufacturing indicator. Over the weekend, the domestic situation in Russia appears to have left markets largely unaffected, but tech investors were seen securing profits as stocks enter the buybacks’ blackout period.</p>
<p><img decoding="async" loading="lazy" class="alignnone wp-image-23900 size-full" src="https://www.keytomarkets.com/blog/wp-content/uploads/2023/06/Untitled-design-35.png" alt="" width="1915" height="915" srcset="https://www.keytomarkets.com/blog/wp-content/uploads/2023/06/Untitled-design-35.png 1915w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/06/Untitled-design-35-300×143.png 300w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/06/Untitled-design-35-1024×489.png 1024w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/06/Untitled-design-35-768×367.png 768w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/06/Untitled-design-35-1536×734.png 1536w" sizes="(max-width: 1915px) 100vw, 1915px" /><em><strong>Chart: AUDUSD</strong></em></p>
<h2>Key Factors For Today</h2>
<ul>
<li>Safe-haven flows ease as markets shrug off the domestic situation in Russia</li>
<li>Tech investors secure profits due to buybacks’ blackout period</li>
<li>German Ifo Business Climate survey shows worst result since last November</li>
<li>US Dallas Fed Manufacturing Activity improves but still below expectations</li>
<li>PBOC steps in to prop up yuan, boosting Aussie on the way</li>
</ul>
<h2>US Equities Pulled off Highs, Led by Nasdaq</h2>
<p>US stocks are entering the pre-earnings season blackout for buybacks, which has found confluence with harsh rhetoric from the Fed and quarter-end rebalancing and concern over the breadth of the recent price moves. The Nasdaq ended its 8-week growth streak last week, with Monday’s drop adding to the take-profit narrative. The index has next support below 14660 near 14300 and resistance above 14900 near 15070.</p>
<h2>German Ifo Shows Worst Result Since Last November</h2>
<p>Germany’s Ifo Business Climate survey fell significantly more than expected, from 91.7 to 88.5, compared to 90.6 expected. The Expectations survey was also lower at 83.6 compared to 88.1 expected. Industrial orders remain weak and backlogs were seen falling, with global monetary policy tightening and dampening demand. EUR/USD ended the slow session unchanged, with $1.0957 and $1.0866 seen as major levels.</p>
<h2>US Manufacturing Improves But Below Expectations</h2>
<p>US Dallas Fed Manufacturing Activity index was worse than expected at -23.2 compared to the -20.2 forecast but still was higher than the prior month’s -29.1. A drop in new orders offset the better results, while the wages index continued to rise, suggesting that inflation pressures remain. USD/JPY rested under 143.86 without sliding under 143.00, opening up at 144.00 and 142.32 in case of a breakout.</p>
<h2>PBOC Steps in to Prop Up Yuan</h2>
<p>The Aussie got a boost after the PBOC set an unexpectedly strong yuan reference rate after reports circulated that Chinese state-run banks were selling USD in the offshore market to support the currency. Chinese Premier Li Qiang affirmed his commitment to achieving a 5.0% annual growth target and said Q2 growth would be faster than Q1. He also said the government would announce new measures to expand domestic demand. After a muted Monday, AUD/USD is up 0.66% early Tuesday, with bulls eying $0.6750 above the 67-cent barrier. On the flip side, $0.6675 may act as daily support.</p>
<h2>On The Docket</h2>
<ul>
<li>ECB President Lagarde’s Speech</li>
<li>ECB Panetta Speech</li>
<li>ECB Elderson Speech</li>
<li>ECB Schnabel Speech</li>
<li>Canada’s Inflation Rate</li>
<li>Durable Goods Orders</li>
<li>S&amp;P/Case-Shiller Home Price</li>
<li>CB Consumer Confidence</li>
<li>New Home Sales</li>
<li>API Crude Oil Stock Change</li>
<li>ECB Forum on Central Banking</li>
</ul>
<h2>FX 1-Day Relative Performance (USD)</h2>
<ul>
<li>Aussie and Kiwi 0.63% and 0.41% up</li>
<li>Euro and British pound 0.19% higher</li>
<li>Yen unchanged while Franc at +0.08%</li>
<li>Canadian dollar is up by 0.17%</li>
<li>Gold is 0.23% higher, while silver is 0.65%</li>
<li>WTI and Brent are up by 0.63% and 0.55%</li>
<li>Natural gas is 0.17% lower</li>
</ul>
<p>The post <a rel="nofollow" href="https://www.keytomarkets.com/blog/analysis/jaspers-market-squawk-27-06-2023-23896/">JASPER’S MARKET SQUAWK 27-06-2023</a> appeared first on <a rel="nofollow" href="https://www.keytomarkets.com/blog">Key To Markets Blog</a>.</p>