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• On the final trading day of 2024, U.S. stocks closed lower (S&P 500 index down 0.4%, NASDAQ down 0.9%). U.S. bond yields strengthened, and the dollar appreciated during the London fixing. The AUD/USD pair fell to a low of 0.6179, ultimately concluding 2024 at 0.6188.
• The Nikkei index was closed on the last calendar day of the year, while the Shenzhen and Hang Seng indices ended 2024 at -1.6% and +0.1% respectively. Australia’s ASX 200 index closed down 1%, dragged by the real estate sector, accumulating a 7.5% gain for the year.
• European stock markets saw the FTSE index rise 0.6% and the CAC index close up 0.9%. The DAX index was closed. EUR/USD and GBP/USD traded quietly at 1.0413 and 1.2534 respectively.
• The offshore yuan extended its decline, falling 0.3% to its weakest level in a year. This occurred prior to China’s announcement of adjustments to the 2025 CFBTS RMB index currency weightings, which include reducing the weights of the dollar, euro, and yen, and adding the Macau pataca to the basket. USD/CNH showed little reaction, with the trading high at 7.339.
• USD/CNH continued to attract attention, reaching a high of 7.37 before retreating to 7.3434 amid low liquidity. This movement preceded comments from People’s Bank of China Governor Pan Gongsheng, who mentioned the need for close monitoring of the global economy and referred to strengthening foreign exchange reserve management strategies.
• U.S. housing data was released, with the FHFA House Price Index declining from 0.7% in October to 0.4%, meeting expectations. The October Case-Shiller Home Price Index rose 0.32% month-over-month and 4.22% year-over-year, both surpassing expectations of 0.20% and 4.10% respectively. The market reaction to the data release was subdued.
| Currency Pair |
Mid-market Rate |
| AUD/USD |
0.6189 |
| AUD/NZD |
1.1058 |
| AUD/JPY |
97.28 |
| AUD/CNY |
4.5371 |
| AUD/EUR |
0.5972 |
| AUD/GBP |
0.4944 |
| AUD/HKD |
4.8009 |
|
Chart of the day
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