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• Wall Street experienced a softer session, with the Dow Jones down 0.6%, S&P 500 down 0.1%, and Nasdaq flat in late trading. U.S. 10-year yields increased by 12 basis points to 4.43%, while crude oil rose 0.3% to $68.20 per barrel. The USD strengthened across the board, pushing AUD/USD to a low of 0.65145 before settling at 0.6530/35 ahead of the Asian market opening.
• Asian equity markets were broadly weaker, with the Nikkei down 0.4%, Shenzhen down 1.1%, and the Hang Seng suffering the most, down 3.1%. The ASX fared slightly better, down only 0.1%, dragged by the energy sector. AUD/USD remained under pressure throughout the Asian session, reaching lows of 0.6547.
• The highly anticipated UK Employment Data was released before the Eurozone markets opened. September’s unemployment rate beat expectations at 4.3% (vs. 4.1% estimated), while October’s Jobless Claims Change came in at 26.7k (compared to 27.9k in September). GBP/USD fell below its 200-day moving average for the first time since May, trading at 1.2819.
• European equities started sluggishly, with the Stoxx, CAC, and DAX all down 1.1%, while the FTSE fell 0.6%. The U.S. 10-year yield rose 6 basis points to 4.36%, and Brent crude oil found buyers at $72 per barrel.
• Before London’s midday, Germany’s ZEW survey expectations for November disappointed at 7.4 (vs. 13.2 expected), while the Eurozone’s equivalent read 12.5, down from 20.1 the previous month. The Bank of England’s Pill noted that last week’s rate cut didn’t signal the end of their work, and the ECB’s Rehn commented that sluggish growth is expected to persist in Europe. The euro hit 6-month lows at 1.0607 before the New York open, while GBP/USD dipped below 1.2800, and the Australian dollar fell to 0.6535.
• As New York opened, the only notable data came from Canada, where September Building Permits rose by 11.5%, up from -6.3% and significantly higher than the expected 3.2%. USD/CAD declined slightly following the release.
• The USD generally remained strong throughout the New York morning, with the Australian dollar experiencing further modest declines. NZD/USD drifted down to 0.59285 lows, EUR/USD fell to 1.0606, and USD/JPY moved up to 154.50.
• Wall Street weakened during the New York morning, quickly losing opening gains before sliding to losses of nearly 0.5%. European markets sold off into the close, with the CAC losing 2.7%, the DAX shedding 2.1%, and the FTSE performing best but still falling 1.2% on the day.
• The USD continued to gain in the New York afternoon as U.S. yields rose further. AUD/USD slid to lows of 0.65145, NZD/USD dipped to 0.5911, EUR/USD fell to one-year lows of 1.0595, GBP/USD slid to 1.2719, and USD/JPY moved up to highs of 154.92.
• Wall Street remained soft late in the session, with the Dow Jones down 0.4%, the S&P 500 down 0.2%, and the Nasdaq down 0.1%.
Mid-market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6529 |
| AUD/NZD | 1.1026 |
| AUD/JPY | 100.99 |
| AUD/CNH | 4.7314 |
| AUD/EUR | 0.6169 |
| AUD/GBP | 0.5125 |
| AUD/HKD | 5.0800 |
Chart of the day
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