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Market Update 20/01/2025

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

Wall Street showed strong performance again on Friday, with the Nasdaq closing up 1.5%, the S&P 500 rising 1.0%, and the Dow Jones gaining 0.8%. The U.S. 10-year Treasury yield increased by 5 basis points to 4.28%, while oil fell 0.9% to $78 per barrel.
Asian stock markets closed mixed on Friday, with the Nikkei down 0.3%, while the Hang Seng and Shenzhen indices rose 0.3%. The ASX fell 0.2%, mainly due to a 1.0% decline in the financial sector.
U.S. housing starts in December increased by 15.8% to 1.499 million units, far exceeding the expected 3% growth to 1.327 million. Building permits decreased by 0.7% to 1.483 million, also better than the expected 2.2% contraction to 1.460 million. Later, U.S. industrial production for December showed growth of 0.9%, against expectations of 0.3%, while capacity utilization was 77.6%, compared to the expected 77.0%. The dollar strengthened further after the data release, with AUD/USD falling to a low of 0.61645, NZD/USD dropping to 0.5564, and EUR/USD declining to 1.0266.
On the other hand, China’s Q4 GDP was released, showing growth of 5.4% (expected 5.0%). Subsequently, news emerged of a phone call between President-elect Trump and President Xi, described as “very good, discussing various topics including trade balance.” Risk assets reacted positively to this news, with AUD/USD rebounding from its low to a high of 0.62265, NZD/USD reaching 0.56145, and EUR/USD breaking above 1.0330.

Mid-market rates.

Currency Pair Mid-market Rate
AUD/USD 0.6199
AUD/NZD 1.1096
AUD/JPY 96.93
AUD/CNY 4.5490
AUD/EUR 0.6033
AUD/GBP 0.5093
AUD/HKD 4.8235

 

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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