The Week Ahead – AI fever steals the show

<div><img width="750" height="430" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153945/The-Week-Ahead-1-1.webp" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="The Week Ahead" decoding="async" loading="lazy" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153945/The-Week-Ahead-1-1.webp 750w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153945/The-Week-Ahead-1-1-300×172.webp 300w" sizes="(max-width: 750px) 100vw, 750px" /></div><h2><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/26091231/Screenshot-2023-06-23-162247-1.webp"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-204049" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/26091231/Screenshot-2023-06-23-162247-1.webp" alt="" width="1518" height="483" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/26091231/Screenshot-2023-06-23-162247-1.webp 1518w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/26091231/Screenshot-2023-06-23-162247-1-300×95.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/26091231/Screenshot-2023-06-23-162247-1-1024×326.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/26091231/Screenshot-2023-06-23-162247-1-768×244.webp 768w" sizes="(max-width: 1518px) 100vw, 1518px" /></a></h2>
<h2>AUDUSD retreats as RBA awaits more data</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153500/AUDUSD-2-2.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204023 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153500/AUDUSD-2-2.webp" alt="Chart of AUDUSD" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153500/AUDUSD-2-2.webp 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153500/AUDUSD-2-2-300×157.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153500/AUDUSD-2-2-1024×535.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153500/AUDUSD-2-2-768×401.webp 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>The Australian dollar falls back as doubt grows over the RBA’s hike push. Minutes from the central bank’s latest meeting showed signs of hesitation as to whether to hit the pause button again in their quantitative tightening. An easing in the upcoming inflation reading could cement expectations of a dovish tilt from the officials. Another factor that could be detrimental to the Aussie is weak growth in China, Australia’s major trading partner, which had led local authorities to cut rates in an attempt to shore up a feeble economic recovery. A cautious mood would drive the price to <strong>0.6500 </strong>while <strong>0.6900 </strong>remains a key hurdle.</p>
<h2>USDCAD rallies as inflation may be stickier</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153528/USDCAD-1-1.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204024 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153528/USDCAD-1-1.webp" alt="Chart of USDCAD" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153528/USDCAD-1-1.webp 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153528/USDCAD-1-1-300×157.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153528/USDCAD-1-1-1024×535.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153528/USDCAD-1-1-768×401.webp 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>The Canadian dollar advances as upbeat data reinforces the case for a Bank of Canada rate hike next month. Stronger-than-expected retail sales data in April foreshadows persistent inflation as consumer’s spending remains robust in spite of tougher financial conditions. If this week’s reading shows that the CPI has become stickier, the BoC could tighten further at the July policy meeting. With its US counterpart still lagging behind the stop-and-go policy, this would fuel the loonie’s rally. In addition, a recovery in oil prices would further bolster the commodity-related currency. The pair is drifting towards<strong> 1.3000 </strong>and <strong>1.3360</strong> is the first hurdle.</p>
<h2>XAUUSD retreats as safety flows ease</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153605/XAUUSD-2-1.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204025 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153605/XAUUSD-2-1.webp" alt="Chart of XAUUSD" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153605/XAUUSD-2-1.webp 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153605/XAUUSD-2-1-300×157.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153605/XAUUSD-2-1-1024×535.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153605/XAUUSD-2-1-768×401.webp 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>Bullion ticks lower as a rebound in risk sentiment reduces flows into safe haven assets. Fed Chair Jerome Powell’s balanced language at the June policy meeting and his congressional testimony has helped markets remain optimistic about seeing the light at the end of the tunnel. This combined with a lack of sensational headlines lately might soothe investors’ nerves by suggesting that economic fundamentals have stayed solid despite brief hiccups, which in turn would prompt them to trim their exposure in the non-yielding metal. The bull’s profit-taking is sending the price towards <strong>1880 </strong>and <strong>1985</strong> is the immediate resistance.</p>
<h2>NAS 100 rallies over AI boom</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153630/US100-1-1.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204026 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153630/US100-1-1.webp" alt="Chart of US100" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153630/US100-1-1.webp 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153630/US100-1-1-300×157.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153630/US100-1-1-1024×535.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/06/23153630/US100-1-1-768×401.webp 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>The Nasdaq 100 hits a 15-month high carried by tech megacaps. In what looks like an odd bull run, extreme enthusiasm in AI has fuelled momentum stocks despite a lingering cautious mood. Macroeconomy-wise, a soft GDP figure for the first quarter would suggest that the Fed’s efforts to stall the economy are starting to have their intended effect, which would be a step closer to the peak interest rates. The price pattern shows that investors remain hopeful with bets for only one additional rate increase this year, followed by cuts in earlier next year. The index is rising towards <strong>15500 </strong>with <strong>14250</strong> as the first support.</p>
<p>The post <a rel="nofollow" href="https://www.orbex.com/blog/en/2023/06/the-week-ahead-ai-fever-steals-the-show">The Week Ahead – AI fever steals the show</a> appeared first on <a rel="nofollow" href="https://www.orbex.com/blog/en">Orbex Forex Trading Blog</a>.</p>