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 session on Wall St. saw the Nasdaq close +.8%, the S&P 500 +.2%, and the Dow Jones -.3%. U.S. 10-year yields fell 4bps to 4.2%, while crude oil fell .3% to $70.15 a barrel. In currency markets, the AUD/USD traded in a .6623/.6661 before settling at .6635/40 ahead of the Asian open.
• Asian equities were mostly weaker on Thursday led by the Hang Seng and Shenzhen down -1.3% and -1.1% respectively while the Nikkei managed 0.1%. The ASX closed -0.1% with IT the most move, down -2.9%. The greenback retraced Wednesday’s gains as AUD/USD climbed to 0.6660 over the session.
• European equities opened stronger after German PMIs beat estimates, French PMIs missed, and Eurozone composite measures matched. The US 10yr fell 5bps back to 4.20% and brent climbed above $76 per barrel. GBP/USD set highs at 1.2973 and EUR/USD was choppy over the data trading between 1.0771 and 1.0808.
• Into the London lunch and the dollar remained on lows. AUD/USD managed a touch better at 0.6661 and NZD/USD reached 0.6031. EUR/USD remained around 1.0800, GBP/USD pushed to 1.2981 despite weaker October PMIs for the UK, and USD/JPY fell to 151.77. US equities were bid ahead of open and brent peaked a touch above $76.50 before correcting to $75.60.
• Into the NY open and US weekly jobless claims data was mixed with initial claims falling to 227k to beat expectations of 242k though continuing claims rose to 1.897 mio to miss expectations of 1.875 mio. Also released and the Chicago Fed National Activity Index for September fell to -0.28, down from -0.01 and below expectations of 0.50. Little reaction to the data though EUR/USD made new marginal highs above 1.0810 with GBP/USD following suit to hit 1.2985.
• Released later in the NY morning and October Manufacturing PMI printed at 47.8 against expectations of 47.5 while Services PMI rose to 55.3 against expectations of 55.0 with the combined results seeing the Composite PMI up to 54.3 against expectations of 53.8. September New Home Sales rose 4.1% to 738k to print higher than forecasts of a 0.6% increase to 720k. Little reaction to the results though USD/CAD moved up to new highs above 1.3850 heading into the London rate set.
• Wall St opened with mixed results though sold off across the NY morning with the Dow falling to 0.5% type losses though the S&P and Nasdaq remained in positive territory. Across the Atlantic and European markets generally closed with modest gains with the DAX up 0.3% at the closing bell while the FTSE and CAC were just 0.1% higher on the day.
• Mixed flows over a quiet NY afternoon with AUD/USD sliding to lows of 0.6623 before recovering while USD/CAD topped out at 1.38685. EUR/USD rallied to tough highs of 1.08245 while USD/JPY fell to 151.555 lows.
• Wall St. remained mixed late in the day with the Nasdaq trading +.6%, the S&P 500 +.1%, and the Dow Jones -.4%.
To watch for
• JP – Oct. Tokyo CPI y/y
• GE – Oct. IFO Survey
• EU – Sep. ECB 1yr & 3yr Expectations
• CA – Aug. Retail Sales
• US – Sep. Retail Sales m/m
• US – Oct. University of Michigan Sentiment
• US – Oct. Kansas City Fed Services Activity
Mid-market rates.
Currency Pair | Mid-market rate |
AUD/USD | 0.6635 |
AUD/NZD | 1.1041 |
AUD/JPY | 100.68 |
AUD/CNH | 4.7281 |
AUD/EUR | 0.6129 |
AUD/GBP | 0.5115 |
AUD/HKD | 5.1555 |
Chart of the day
Disclaimer:
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.
Corporate Alliance Group Pty Ltd T/A Corporate Alliance FX (CAFX) (ABN 58 167 119 226, AFSL 523351) (i.e. CAFX), CAFX independently holds the Australian Financial Services licence no. 523351 (AFSL), so CAFX is regulated by the Australian Securities and Investment Commission (ASIC) and, and although ASIC is a strictly regulatory body, it does not endorse a specific financial product. ASIC’s regulation of CAFX applies to all services under the financial licence held by CAFX, including the issuance of foreign exchange settlement, foreign exchange payments, foreign exchange risk control, hedging, market making and providing financial advice.