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Market Update 22/10/2024

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

A mixed start to the week on Wall St. saw the Dow Jones close -0.8%, the S&P 500 -0.1%, and the Nasdaq +0.3%. U.S. 10-year yields rose 11bps to 4.19%, while crude oil rose 1.7% to $70.40 a barrel. AUD/USD settled at the lower end of its 0.6652/.67225 range.

• Asian equities started the week mixed with the Shenzhen up 0.3%, the Hang Seng down -1.6%, and the Nikkei mostly unchanged. The ASX climbed 0.7% as gains in materials offset losses in IT stocks. AUD/USD set 0.6722 highs in the early afternoon following comments by the RBA’s Hauser noting a surprise in labour participation last week.

• European equities opened softer as the Stoxx, CAC, and DAX fell half a percent. The US 10yr climbed above 4.10% and brent was steady below $73.50 per barrel. EUR/USD and GBP/USD traded 30 points lower on the previous session following a miss in Germany’s September PPIs (-0.5% m/m vs -0.2% exp.).

• A quiet session into the London lunch saw the greenback churn higher as the antipodes fell to 0.6680 and 0.6050. USD/JPY briefly traded above 150 to find 150.09 while EUR/USD and GBP/USD found 1.0845 and 1.30135 lows. US equity futures were weaker ahead of open while brent pushed back to $74.50, up 2.0%.

• No data of note early in the NY session though the Leading Index for September was released later in the NY morning, printing at -0.5% against expectations of -0.3%. No reaction to the data though the USD moved slowly but steadily higher into the London rate set.

• AUD/USD fell to lows of 0.6662 while NZD/USD dipped to 0.6034 and EUR/USD and GBP/USD made respective lows of 1.08285 and 1.29895. USD/JPY rose to 150.28 while USD/CAD reached highs of 1.38445.

• Wall St was weaker from the open with the Dow around 0.5% lower in early trade with slightly more modest losses on the S&P and Nasdaq. Across the Atlantic, European markets remained heavy I late trade with the FTSE losing 0.5% while the CAC and DAX closed 1% lower on the day.

• Markets were more subdued heading into the NY afternoon though the USD remained firm. AUD/UD slipped a little further to hit lows of 0.6655 while NZD/USD dipped to 0.60265, EUR/USD made lows near 1.0815 and GBP/USD fell to 1.2978. USD/CAD fell just short of 1.3850 while USD/JPY was the biggest mover as it reached 150.80.

• Wall St. remained weak late in the day with the Dow Jones trading -.9%, the S&P 500 -.4%, and the Nasdaq -.1%.

To watch for
• NZ – Sep. Trade Balance
• NZ – RBNZ’s Silk Speaks
• CN – Oct. FX Net Settlement
• US – Oct. Philadelphia Fed Non-Manufacturing Index
• EU – ECB’s Knot, Centeno, Holzmann, Villeroy Speak
• UK – BOE’s Green, Baily, Breeden Speak
• US – Fed’s Harker Speaks

Here are the latest mid-market rates:

Currency Pair Mid-market rate
NZD/USD 0.6029
NZD/AUD 0.9059
NZD/JPY 90.88
NZD/CNY 4.3026
NZD/EUR 0.5574
NZD/GBP 0.4643
NZD/HKD 4.6853
NZD/SGD 0.7935

 

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