Asia-Pacific markets may pull back from gains seen on Tuesday following a shaky session on wall Street. The S&P 500 index led losses among the major indexes, while the VIX “fear gauge” rose above the 20 handle. The 10-year benchmark Treasury yield saw mild buying, pushing the note’s yield down near a full percentage point.
The Australian Dollar may see movement on the Westpac Consumer Confidence Index for May, due out at 00:30 GMT. The prior month’s read crossed the wires at 118.8, the third consecutive monthly move higher. The Aussie Dollar may strengthen if the trend of improving consumer confidence continues. AUD/USD strengthened overnight following Tuesday’s Reserve Bank of Australia (RBA) Minutes.
Rising prices across the economy, especially in the commodities space, have helped cushion underlying fundamental strength for the Australian Dollar. Iron ore – one of Australia’s main exports – is extending gains from the previous session, with the industrial metal eyeing its recent high. Pandemic-fueled stimulus spending has helped push industrial metals to multi-year highs as governments focus on job-creating initiatives like infrastructure. China is perhaps the largest driver of imports.
