Market Update 16/05/2025

Forex Market

USD: Mixed Data Keeps USD Volatile, Post-CPI Softness Lingers

The dollar saw choppy trading after a raft of mixed U.S. data. CPI softness and weaker-than-expected PPI initially pressured the greenback, though it later firmed as markets reassessed the rate outlook. GBP/USD outperformed, while AUD and NZD lost ground late in the session.

• AUD/USD traded 0.6391–0.6457, closing near 0.6405/10
• NZD/USD dipped to 0.5861
• EUR/USD hit highs of 1.1229, later faded to 1.1170
• GBP/USD touched 1.3319 before paring gains
• USD/CAD rose through 1.4000 to 1.4004
• USD/JPY fell to 145.42 before recovering

NZD: Brief Rally on Risk-On Flows, Slips Late on USD Rebound

NZD/USD tracked higher early in the session, benefitting from broad USD softness and improved risk sentiment. However, gains faded into the NY session as the dollar recovered and commodity sentiment weakened.

• NZD/USD hit early highs near 0.5940 before slipping back to 0.5861
• Softer commodity backdrop weighed on late trade
• Market focus shifts to U.S. housing data and broader USD flows

Key Economic Data Ahead (Sydney Time)

General Market

Wall Street

Equities opened soft but staged a broad-based recovery into the close. Nasdaq rose 0.6% while the Dow slipped 0.2% and the S&P 500 ended flat. Market focus remains on Fed signals and trade commentary.

• Dow Jones -0.3%
• S&P 500 -0.1%
• Nasdaq +0.6%

Asia

• Hang Seng +2.3%, Shenzhen +1.2%
• Nikkei -0.1%, ASX +0.1%

Europe

• DAX, CAC, Stoxx all -0.5% intraday; FTSE flat

Commodities

• Brent -1.3% to $63.50/bbl
• U.S. 10Y yields -3bps to 4.45%