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
• The technology sector drove a positive session on Wall St. with the Nasdaq closing +0.8%, the S&P 500 +.2%, and the Dow Jones -.3%. U.S. 10-year yields were unchanged, while crude oil traded fractionally lower to $67.20 a barrel. In currency markets, the AUD/USD settled at the lower end of its 0.6545/.65845 range ahead of today’s quarterly inflation data.
• Asian equities finished the session mixed, the Nikkei +0.8%, Hang Seng +0.5%, and Shenzhen -1%. Locally, the ASX rose +0.3% as consumer discretionary and info tech lead gains. AUD/USD traded a narrow 23pt range from 0.6584 morning highs to late afternoon 0.6563 lows.
• European equities followed suit to open strong: the Stoxx and DAX +0.5%, CAC +0.7%, and FTSE +0.4%. EUR/USD and GBP/USD were bid to 1.0826 and 1.2989 following a beat in Germany’s November Gfk consumer confidence (-18.3 vs -20.5 exp.).
• China’s PBOC announced considerations for approving a fresh fiscal package potentially worth over 10 trillion Yuan. AUD/USD jumped off 0.6559 lows to 0.6580. The US 10yr set highs at 4.31%, Brent climbed back above $72/bbl and US equity futures found a slight bump.
• Into the NY open and US Wholesale Inventories for September fell by 0.1%, short of expectations of a 0.1% gain. Released shortly afterwards and housing data was on the firmer side with the FHFA Housing Index rising 0.3% compared to forecasts of +0.1% while Case Shiller House Prices rose 0.35% MoM and 5.20% YoY, higher than respective expectations of 0.20% and 5.10%.
• The USD ticked higher over the NY morning with the local unit falling to lows near 0.6550 while NZD/USD dipped to 0.5958 and EUR/USD made lows of 1.0769. USD/JPY rose to 153.87 highs with USD/CAD up to 1.3912 in the move.
• US JOLTS Job Openings were 7.443 mio in September down from a negatively revised 7.861 mio and below expectations of 8.000 mio. Also released and October Consumer Confidence printed at 108.7, up from a positively revised 99.2 and better than expectations of 99.5.
• Despite the mixed results, markets seemingly giving more weight to the jobs data with the USD paring gains in the immediate aftermath. GBP/USD was the best performer as it rose to new highs of 1.30115 though the greenback otherwise recovered into the London rate set. This saw AUD/USD falling to 0.6545 lows with NZD/USD down to 0.5954 while USD/CAD rose to 1.3930.
• Wall St opened in the res though ticked higher with the Nasdaq moving to gains or more than 0.5% though the Dow and S&P were either side of flat across the NY morning. Across the Atlantic, European markets closed in the red across the board with the FTSE shedding 0.8% on the day while the CAC lost 0.6% and the DAX closed down 0.3%.
• Wall St. was calm entering the final hour of trade with the Nasdaq trading +.8%, the S&P 500 +.3%, and the Dow Jones -.2%.
To watch for
• AU – Sep. CPI y/y
• FR – 3Q P. GDP y/y
• EU – Oct F. Consumer Confidence and Services and Industrials Confidence
• EU – 3Q A. GDP SA y/y
• UK – UK Chancellor of the Exchequer Rachel Reeves presents budget
• US – MBA Mortgage Applications
• US – Oct. ADP Employment Change
• US – 3Q A. GDP Annualised
• US – 3Q A. Personal Consumption and Q3 A. Core PCE Price Index q/q
• US – Sep. Pending Homes Sales
Mid-market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6560 |
| AUD/NZD | 1.0987 |
| AUD/JPY | 100.57 |
| AUD/CNH | 4.6863 |
| AUD/EUR | 0.6063 |
| AUD/GBP | 0.5040 |
| AUD/HKD | 5.0980 |
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.
