Stronger Dollar, markets weaken
Important news for the day
Tue, 04th, 04:30 CET AU Interest rate decision.
Tue, 04th, 22:45 CET NZ Employment change.
AUD weakness
Today’s interest rate decision from Australia did not offer a change. Instead, the RBA left rates unchanged at 3.60%. Rising consumer prices caused the bank not to act and the AUD subsequently continued to lose momentum. Usually, this might have caused the Aussi to strengthen, whereas the negative sentiment in markets caused the opposite. The correction in stock markets might also be a reason for the selloff, which usually reflects the AUD to weaken as well. The strengthening of the Dolllar also helps the moves to intensify.
Market talk
The Dollar continues to strengthen and might hence cause a negative risk sentiment. Equities seem to weaken further as a result and also precious metals move to the downside slightly. Oil prices also weaken off the negative trendline and might signal some trouble ahead as well. The USDCAD currency pair looks set to break higher after the 50- moving average has been defended based on the weekly chart. The negative risk sentiment also causes the crypto market to push lower.
Tendencies in the markets
- Equities weaker, USD stronger, crypto weaker, oil weaker, Silver sideways, Gold sideways.
Author
Frank Walbaum
FX Strategies.Asia
Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.
