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Market Update 19/12/2024

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX. If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com

 

• Earlier yesterday, the Federal Reserve implemented a 25 basis point rate reduction, aligning with widespread market expectations. Following the announcement, Wall Street experienced a decline, with the Nasdaq falling 1.4%, the S&P 500 index decreasing by 1.2%, and the Dow Jones Industrial Average dropping 1%. The yield on 10-year U.S. Treasury notes rose by 8 basis points to 4.48%, while crude oil prices increased by 0.5% to $70.30 per barrel. Significant demand for the U.S. dollar drove the AUD/USD exchange rate down to a low of 0.62345, the EUR/USD to 1.0355, and the GBP/USD to 1.2582.
• Asian equity markets once again closed with mixed results. The Nikkei index declined by 0.7%, while the Hang Seng index appreciated by 0.8%. Australia’s ASX 200 index remained unchanged.
• The United Kingdom’s November Consumer Price Index (CPI) data broadly met expectations. The headline CPI registered a year-on-year increase of 2.6%, in line with estimates, while the core CPI rose by 3.5% year-on-year (against an estimate of 3.6%). The British pound faced downward pressure, declining from a high of 1.2730 to a low of 1.26805 against the U.S. dollar. The Eurozone’s final November CPI was also released, showing a 2.2% year-on-year increase (compared to an estimate of 2.3%). The EUR/USD exchange rate exhibited minimal reaction, trading near its previous closing level of 1.0495.
• U.S. economic data releases were limited in significance. November housing starts in the United States decreased by 1.8% to 1.289 million units, falling short of the anticipated 2.6% increase to 1.345 million units. However, building permits rose by 6.1% to 1.505 million units, surpassing expectations of a 1.0% increase to 1.430 million units.

 

Mid-market rates.

Currency Pair Mid-market Rate
AUD/USD 0.6214
AUD/NZD 1.1063
AUD/JPY 96.20
AUD/CNY 4.5523
AUD/EUR 0.6004
AUD/GBP 0.4944
AUD/HKD 4.8288

 

Chart of the day

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The market update provided by Corporate Alliance FX (CAFX) is for reference only and does not constitute a bid, levy, offer or invitation to offer for the financial product, the basis for any contract or commitment, a recommendation for the purchase or sale of any investment instruments, financial, legal, tax, investment advice, investment advice or other opinions. It will not be legally liable for any consequences or losses caused by the information or content involved.
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