SD Weakness, AUD Strength, Markets Edge Higher

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Forex Market 

USD: DOJ Subpoenas Weigh as Markets Look Through Political Noise
The U.S. dollar weakened after news that the Department of Justice had served subpoenas on Fed Chair Jerome Powell and the central bank, injecting political uncertainty into markets. While White House adviser Hassett voiced support for the investigation, he downplayed any link to monetary policy, and investors showed limited concern over near-term implications, allowing USD softness to persist through the session.
AUD/USD was supported by both broad USD weakness and stronger domestic data, with Australia’s household spending reinforcing the reflation theme. The pair climbed toward the upper end of its recent range before easing into the Sydney open. EUR/USD and GBP/USD both advanced on the back of USD selling, extending gains during European trade. NZD/USD pushed higher alongside the improved risk tone, while USD/CAD drifted to fresh session lows as the greenback remained under pressure.

General Market

Wall Street
  • Dow Jones: +0.1% | 49,527
  • S&P 500: +0.1% | 6,977
  • Nasdaq: +0.4% | 23,771
  • VIX: +4.0% | 15.07

Asia-Pacific

  • Nikkei: +1.6% | 51,940
  • Shanghai Comp: +1.1% | 4,165
  • ASX 200: +0.5% | 8,759

Europe

  • DAX: +0.6% | 25,405
  • FTSE: +0.2% | 10,141
  • CAC: 0.0% | 8,359

 

Headlines to Watch

United States
  • December CPI expected to reaccelerate, with both headline and core seen at +0.3% m/m.
  • Ongoing DOJ investigation into the Fed continues to weigh on USD sentiment, though markets remain focused on inflation data.
Australia
  • Rising household spending reinforces the reflation narrative, supporting the AUD.
Asia
  • Japan’s current account data may influence JPY following recent volatility in USD/JPY.
Currency PairMid-market Rate
AUD/USD0.6708
AUD/NZD1.1622
AUD/JPY105.97
AUD/CNY4.6772
AUD/EUR0.5750
AUD/GBP0.4981
AUD/HKD5.2301

 

 

 

 

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