Markets

The British pound and uncertainty are clearly not friends

There’s nothing like a bit of political and economic uncertainty to spark a selloff in the British pound, as shown in the chart below from Goldman Sachs. It’s the UK uncertainty index, a construct of economists Scott Baker, Nick Bloom and Steven Davis, that goes back 100 years. Goldman has […]
The British pound and uncertainty are clearly not friends
Markets

The Australian dollar is cruising

Despite a whirlwind of potential market-moving events, the Australian dollar did next to nothing overnight, pretty much sitting where Asia left it late in New York trade. When we say nothing, perhaps that’s a little unfair — the AUD/USD did move in a range between .7548 to .7592 over European […]
The Australian dollar is cruising
Markets

CHART OF THE DAY: The pound has taken off

After days of relentless selling, the British pound has finally found its footing in Asia, jumping more than one per cent against the US dollar. The catalyst for the rebound, modest in comparison to the carnage seen in recent days, has come from the news that UK prime minister, Theresa […]
CHART OF THE DAY: The pound has taken off
Markets

The Australian dollar couldn’t escape the carnage in markets overnight

The Australian dollar couldn’t escape the carnage in financial markets overnight, tumbling to a fresh three-week low. After opening the session above 76 cents, it was one-way traffic for the Aussie in Asian trade, sliding lower on the back of higher US treasury yields, weakness in the Chinese yuan and […]
The Australian dollar couldn’t escape the carnage in markets overnight
Markets

The Australian dollar has been in the wars today

The Australian dollar has been in the wars on Tuesday. Undermined by a spike in US 10 treasury yields, a continued slide in the Chinese yuan and dovish remarks from the assistant governor of the Reserve Bank of New Zealand, the AUD/USD has been under pressure for most of the […]
The Australian dollar has been in the wars today
Markets

The Australian dollar is back above 76 cents as crude oil prices surge

The Australian dollar popped higher in overnight trade, sitting above the US 76 cent level for much of the US session. Impressively, the lift in the Aussie came despite US dollar strength — something some analysts put down to the outcome of the second US presidential debate — seemingly taking […]
The Australian dollar is back above 76 cents as crude oil prices surge
Markets

The Chinese yuan just fell to a 6-year low against the US dollar

The Chinese yuan is reeling upon the resumption of trade following Golden Week holidays. The USD/CNY, onshore traded yuan, hit a session high of 6.7040 just moments ago, marking the weakest level for the yuan against the US dollar since September. Earlier in the session the People’s Bank of China […]
The Chinese yuan just fell to a 6-year low against the US dollar
Markets

An increasing number of traders think the US dollar will strengthen

Currency traders continued to flock to the US dollar last week. According to ANZ, citing the latest Commitment of Traders (COT) report released by the US Commodity Futures Trading Commission (CFTC), net US dollar long positioning against a basket of major currencies continued to swell last week, leaving it at […]
An increasing number of traders think the US dollar will strengthen
Markets

US politics look set to move the Australian dollar today

The Australian dollar has pushed higher in early Asian trade on Monday, moving back above the US 76 cent level having closed at .7575 on Friday. Some have put the move down to the reduced likelihood of Donald Trump presidency following the release of damaging recordings over the weekend. That […]
US politics look set to move the Australian dollar today
Markets

The Aussie dollar is tumbling ahead of tonight’s key US jobs report

The Australian tumbled overnight, undermined by broad based US dollar strength before tonight’s US non-farm payrolls for September. Having opened Thursday’s trade buying .7620, the AUD/USD was under pressure from the get-go in Asia with selling intensifying during European trade. It eventually hit a low of .7559 before rebounding modestly […]
The Aussie dollar is tumbling ahead of tonight’s key US jobs report
Markets

The Australian dollar is under pressure

The Australian dollar, mirroring the broader move in riskier assets such as stocks and commodities, came under pressure overnight, undermined by a lift in US bond yields and rumours that the European Central Bank was considering reducing the scale of its asset purchase program. “EUR/USD spiked up briefly to 1.1240 […]
The Australian dollar is under pressure
Markets

The Australian dollar is grinding higher

The Australian dollar rose modestly in overnight trade, largely ignoring weakness in US stocks and a stronger-than-expected US manufacturing PMI report for September that saw the odds of a US rate hike in December firm slightly. The AUD/USD eventually closed Monday’s session buying .7670, having risen to as high as […]
The Australian dollar is grinding higher
Markets

The Australian dollar just took a hit

On the back of rising risk aversion and technical selling, the Australian dollar closed sharply lower in overnight trade. As was the case for stocks, the selling in the Aussie was primarily as a result of intensified concerns over German banking giant, Deutsche Bank. “Growing concern that Deutsche Bank AG’s […]
The Australian dollar just took a hit
Markets

The Aussie dollar is looking resilient, closing at a 3-week high

The Australian dollar consolidated on gains achieved in Asia following the first US presidential debate in overnight trade. It was a resilient performance, all things considered, coming despite the release of upbeat US economic data, continued concerns surrounding Deutsche Bank and weakness in commodity markets, particularly for crude oil. “US […]
The Aussie dollar is looking resilient, closing at a 3-week high
Markets

NAB: The Aussie is overvalued and staying that way

As it has been for much of the past two months, the Australian dollar remains overvalued. However, following the US Federal Reserve’s September FOMC meeting, held last week, that trend looks set to “stay that way”. That’s the view of the National Australia Bank’s FX strategy team, headed by Ray […]
NAB: The Aussie is overvalued and staying that way
Markets

The Aussie dollar rally faltered on Friday

The Australian dollar rally faltered on Friday, seeing it give back some of the hefty gains of the previous four sessions. While there were a number of US Fed speakers active on Friday, along with another substantial decline in crude oil futures, there was no one catalyst to explain the […]
The Aussie dollar rally faltered on Friday
Markets

PARTY POSTPONED: Westpac doesn’t see Aussie-Kiwi hitting parity

Others think it will, but Westpac currency strategist, Sean Callow, doesn’t think the New Zealand dollar will reach parity with its Australian namesake. Yes, box up the balloons and streamers and put the champagne on ice. The parity party looks set to be postponed for yet another year. “New Zealand’s […]
PARTY POSTPONED: Westpac doesn’t see Aussie-Kiwi hitting parity
Markets

ANZ: A Trump Presidency would be bullish for the US dollar

After a week in which markets have been focused on the actions of central banks, all attention in the week ahead will shift to the US Presidential race. In particular, there’ll be plenty of eyes on the first Presidential debate between Democratic nominee, Hillary Clinton, and Republican nominee, Donald Trump. […]
ANZ: A Trump Presidency would be bullish for the US dollar
Markets

The Australian dollar continues to push higher

It was a topsy-turvy session for the Australian dollar overnight, initially jumping to a two-week high in Europe before sliding lower in US trade. The AUD/USD currently trades at .7638, having closed Thursday’s session buying .7642. “AUD/USD lifted to touch a fresh two-week high of 0.7675 in overnight trade,” said […]
The Australian dollar continues to push higher
Markets

The Australian dollar continues to climb

The Australian dollar soared in overnight trade, rallying in unison with global stocks following the release of the US Federal Reserve’s September monetary policy decision. While the Fed appears to be moving closer to raising rates, noting in its monetary policy statement that “the committee judges that the case for […]
The Australian dollar continues to climb
Markets

It’s going to be a whirlwind 24 hours for the Australian dollar

The Australian dollar continued to push higher in overnight trade, benefiting from firmer commodity prices and thin market conditions ahead of key central bank monetary policy decisions that will arrive over the next 24 hours. As at 8.20am AEST, the AUD/USD currently buys .7557, largely unchanged from Tuesday’s closing level. […]
It’s going to be a whirlwind 24 hours for the Australian dollar
Markets

Tuesday was not a good session for the Australian dollar

Tuesday was not a good session for the Australian dollar. It tumbled by close to 1.5% against the US dollar, taking its decline from the highs seen last week to 3.5%. The catalyst for the decline was US dollar strength, which in turn was driven by a continued lift in […]
Tuesday was not a good session for the Australian dollar
Markets

NAB: The Aussie dollar could top 78 cents next week

Despite falling in recent days, the Australian dollar has enjoyed a stellar recovery from the lows seen earlier in the year. From January 15, a period when the markets thought the Chinese economy was going to implode, the Aussie has rallied by over 10% against the US dollar. As soon […]
NAB: The Aussie dollar could top 78 cents next week
Markets

The Australian dollar bounced overnight as US stocks surged

The Australian dollar lifted overnight, riding on the coattails of a recovery in risk assets that was led by US stocks. The recovery in the Aussie, up 1% from the lows seen in European trade, was driven by a speech from Lael Brainard, a voting member on the US Fed’s […]
The Australian dollar bounced overnight as US stocks surged
Markets

The Aussie dollar resembled a rollercoaster overnight

It was a crazy night for the Australian dollar, as seen in the 5-minute tick chart below which looks a bit like a roller coaster. Having traded above .7730 in early European trade, the reversal in the Aussie began following the release of the ECB’s September monetary policy decision. “Global […]
The Aussie dollar resembled a rollercoaster overnight
Markets

The ducks appear to be lining up for a test of Aussie-Kiwi parity

There’s just no stopping the New Zealand dollar right now. Overnight it hit a 17-month high against the US dollar, rising on the back of stronger dairy prices, robust manufacturing data and an ongoing search for yield among global investors. The NZD/USD daily chart below tells the story. It’s been […]
The ducks appear to be lining up for a test of Aussie-Kiwi parity
Markets

CBA sees USD-JPY trading below 100 before the end of September

If you think the Bank of Japan will add to existing monetary policy stimulus at its September 21 meeting, be prepared for disappointment. Although it’ll be a close call, it’s unlikely to do so, and that’ll put a rocket under the Japanese yen. That’s the view of Joseph Capurso, senior […]
CBA sees USD-JPY trading below 100 before the end of September
Markets

The Aussie dollar just logged its largest gain in over 2 months

The Australian dollar soared overnight, powered by the twin factors of broad based US dollar weakness and, in all likelihood, speculation of another bumper Australian GDP report arriving later in the session. The AUD/USD finished Tuesday trade buying .7686, up a whopping 1.43% from Monday. It was the highest close […]
The Aussie dollar just logged its largest gain in over 2 months
Markets

The Australian dollar looks set to wake from its slumber

The Australian dollar had a quiet session overnight, briefly popping above the US 76 cent level before reversing lower amid low-volume, holiday-impacted trade. The AUD/USD eventually finished Monday’s session buying .7578, an increase of just 0.11% on Friday’s closing level. It currently buys .7585. Hardly exciting, but that all looks […]
The Australian dollar looks set to wake from its slumber
Markets

FX traders are losing faith in further US dollar strength

Despite the prospect of a near-term interest rate hike in the US, something that garnered traction following the Jackson Hole central bank symposium held two weeks ago, FX traders continued to reduce their net long positioning in the US dollar last week, according to the latest Commitment of Traders (COT) […]
FX traders are losing faith in further US dollar strength
Markets

CHARTS: Here’s how much currency is traded every day

If you’ve ever wondered just how much currency is traded on average each and every day, we have some good news. Thanks to HSBC, citing data from the Bank of International Settlements (BIS), we have the answer. It’s $US5,100,000,000,000. That’s trillion with a “t”. It’s a mind-boggling figure, but actually […]
CHARTS: Here’s how much currency is traded every day
Markets

It’s going to be a big day for the Australian dollar

The Australian dollar did next to nothing overnight, oscillating in a thin range over the course of European and US trade. Markets largely ignored the release of a strong private sector payrolls report in the US and another plunge in crude prices, seemingly content to wait for a raft of […]
It’s going to be a big day for the Australian dollar
Markets

The Australian dollar slides to a 1-month low

The Australian dollar is trading at a one-month low this morning, coming under pressure overnight on the back of broad based US dollar strength, technical selling and weaker commodity prices. Richard Grace, chief currency strategist at the Commonwealth Bank, put the US dollar move down to further hawkish commentary from […]
The Australian dollar slides to a 1-month low
Markets

The Australian dollar has regained its footing

The Australian dollar rose fractionally on Monday, boosted by falling US bond yields which acted to weaken the US dollar. Richard Grace, chief currency strategist at the Commonwealth Bank, put the decline in yields down to another subdued inflation reading arriving in the US overnight, casting some doubt on the […]
The Australian dollar has regained its footing
Markets

CBA: Cows could herd the New Zealand dollar towards parity with the Aussie

Dairy production in New Zealand is falling, and that could push the Kiwi dollar towards parity against the Australian dollar, according to Joseph Capurso, senior currency strategist at the Commonwealth Bank He suggests that a shrinking dairy herd in New Zealand, coupled with expected seasonal weakness in iron ore prices, […]
CBA: Cows could herd the New Zealand dollar towards parity with the Aussie
Markets

The Australian dollar is hanging tough, defying slumping commodity prices

The Australian dollar, yet again, did very little overnight, a remarkable performance all things considered given carnage seen in commodity markets. The AUD/USD traded in a 50 pip range between .7585 and .7635, eventually closing Wednesday’s session buying .7612, near identical to the Tuesday’s closing level. It’s very hard to […]
The Australian dollar is hanging tough, defying slumping commodity prices
Markets

HSBC: Emerging market currencies are still cheap

Like many other risk assets, emerging market currencies have performed strongly in 2016, recovering some of the ground lost in the preceding three years. After the recent move, coming at a time when global growth remains tepid at best, many are now asking themselves whether they are no longer cheap. […]
HSBC: Emerging market currencies are still cheap
Markets

CITI: Parity between the Aussie and NZ dollar is on the cards

It’s not just Wallabies that are looking in the trans-Tasman equation right now. The New Zealand dollar could be about to hit parity with its Australian counterpart for the first time on record, according to Citibank’s FX technical analysis team. Tom Fitzpatrick, Shyam Devani, Dan Tobon and Beimnet Abebe say […]
CITI: Parity between the Aussie and NZ dollar is on the cards
Markets

The Australian dollar continues to drift above 76 cents

The Australian dollar softened in overnight trade, opening Wednesday’s session just above the 76 cent level. The AUD/USD rose to as high as .7655 in European trade before reversing over the course of the US session, eventually closing at .7615. The pullback corresponded with a bullish new home sales report […]
The Australian dollar continues to drift above 76 cents
Markets

The Australian dollar bounced overnight after hitting a 3-week low

The Australian dollar staged an abrupt about-face in overnight trade, reversing losses seen in Asia to close higher for the session. From a low of .7580 struck in Asia, the lowest level seen since August 4, the AUD/USD screeched higher over the European and US sessions, hitting a high of […]
The Australian dollar bounced overnight after hitting a 3-week low
Markets

NAB: The Aussie dollar looks set to remain stronger for longer

Hot on the heels of ANZ changing its Australian dollar forecasts, the National Australia Bank has done the same, predicting that expected weakness in the Aussie will take far longer than what had been previously anticipated. Firstly, here’s the NAB’s new forecasts, not only for the AUD/USD but also against […]
NAB: The Aussie dollar looks set to remain stronger for longer
Markets

ANZ: 66c is coming for the Aussie dollar… eventually

The ANZ has tweaked its forecasts for the Australian dollar, suggesting that while it’s still likely to fall to the mid-60 cent level, it will take far longer than previously anticipated. “The strong, post-Brexit rally in the AUD has driven us to reassess our forecast trajectory,” said Daniel Been, head […]
ANZ: 66c is coming for the Aussie dollar… eventually
Markets

The rally in the Australia dollar stalled overnight

The rally in the Australian dollar stalled overnight despite strength in stocks and crude oil, raising questions over whether its stellar run of late is over. The AUD/USD eventually finished the session buying .7695, down 0.1% from Wednesday’s close. It briefly traded above .7750 on Thursday before succumbing to selling […]
The rally in the Australia dollar stalled overnight
Markets

Iron ore is back below $60 a tonne

Iron ore is back below $60 a tonne. According to Metal Bulletin, the spot price for benchmark 62% fines fell by a further 2% to $59.36 on Thursday, extending its slide over the past two sessions to 3.6%. It now sits at a two week low. Year to date, however, […]
Iron ore is back below $60 a tonne
Markets

There’s just no stopping the Australian dollar right now

The Australian dollar closed above the 77 cent level for the first time in four months overnight, continuing the relentless move higher seen since mid-July. The AUD/USD eventually closed the session buying .7702, having traded above .7750 in the early parts of the US session. The pullback over the US […]
There’s just no stopping the Australian dollar right now
Markets

The Australian dollar just hit a three-month high

The Australian dollar just closed at a three-month high, continuing to grind higher since mid-July. After hitting .7687 in the early parts of US trade, the AUD/USD closed Tuesday’s session at .7671, the highest level seen since April 26. “Falling global bond yields, a further increase in European equity markets […]
The Australian dollar just hit a three-month high
Markets

The Australian dollar is floating higher

After briefly coming under renewed selling pressure on Friday, the Australian dollar got back to doing what it does best at present — move higher — surging to a fresh one-month high against the US dollar in overnight trade. The AUD/USD rose to as high as .7572 shortly after the […]
The Australian dollar is floating higher
Markets

FX traders like the look of the US dollar

After months of selling, FX traders now like the look of the US dollar. According to the latest Commitment of Traders (COT) report released by the US Commodity Futures Trading Commission (CFTC), net US dollar long positions rose to $US16.3 billion last week, up $US2.9 billion on the levels of […]
FX traders like the look of the US dollar
Markets

The Australian dollar is under pressure as US rate hike expectations lift

The Australian dollar is coming under renewed selling pressure, currently testing the 76 US cent level in early Asian trade on Monday morning. After closing Friday’s session buying .7619, the AUD/USD sunk to as low .7603 on Monday morning, weighed down by US dollar strength following last Friday’s stellar US […]
The Australian dollar is under pressure as US rate hike expectations lift
Markets

The Australian dollar looks like it wants to go higher

You just can’t keep the Australian dollar down at present. On almost every dip, it seems to find a new batch of buyers. That was certainly the theme seen overnight, continuing the pattern from July 27 — the day Australia’s Q2 CPI was released — with the AUD/USD touching a […]
The Australian dollar looks like it wants to go higher
Markets

The Australian dollar has calmed down

The Australian dollar is almost exactly where Asia left it in early trade on Thursday. It finished Wednesday’s session buying .7588, representing a decline of 0.28% from the previous close. Compared to the fireworks of previous days, it was a quiet session, trading in a range of less than 50 […]
The Australian dollar has calmed down
Markets

The RBA rate decision looks set to rattle the Australian dollar

It’s going to be an another crazy session for the Australian dollar. Following the release of Australian building approvals and international trade figures for June earlier in the session, markets will be focused on one event and one event only later this afternoon: the Reserve Bank of Australia’s August interest […]
The RBA rate decision looks set to rattle the Australian dollar
Markets

WESTPAC: We can’t be too bearish on the Australian dollar right now

Less than 24 hours away from the Reserve Bank of Australia’s (RBA) August monetary policy decision, at which the bank is broadly expected to cut interest rates to a fresh record-low of just 1.50%, the Australian dollar couldn’t care less. At 76 cents, the AUD/USD currently sits at the highest […]
WESTPAC: We can’t be too bearish on the Australian dollar right now
Markets

It’s going to be an enormous week for the Australian dollar

The Australian dollar has opened the new trading week within touching distance of 76 US cents, leaving it at the highest level seen since July 18. The catalyst for the renewed surge — something that has seen the AUD/USD gain 2.4% from the lows seen last Wednesday — was a […]
It’s going to be an enormous week for the Australian dollar
Markets

It’s going to be a wild session for the Australian dollar

Following a sharp and sudden rally in late Asia — something that saw it jump to as high as .7560 — the Australian dollar eased lower in overnight trade, closing the session buying .7500, up 0.5% from Monday’s closing level. The price action over the past 24 hours is shown […]
It’s going to be a wild session for the Australian dollar
Markets

The Australian dollar just ripped higher, seemingly out of nowhere

On a sleepy Tuesday session in Asia, there’s one market that’s moving more than others: currencies. The Australian dollar, seemingly out of nowhere, has jack-knifed higher in recent minutes, jumping to a session high of .7535. The AUD/USD currently trades at .7524, up 0.76% for the session. The move may […]
The Australian dollar just ripped higher, seemingly out of nowhere
Markets

The Australian dollar is under pressure

The Australian dollar has opened the new trading week below the 75 cent level, weighed down by weakness in commodity prices and continued US dollar strength. As at 7.35am AEST, the AUD/USD buys .7461, unchanged from last week’s close. At one point on Friday the AUD/USD fell to as low […]
The Australian dollar is under pressure
Markets

After a wobbly start to the week, the Australian dollar has found its footing

After several days of losses, the Australian dollar stabilised overnight with the AUD/USD closing Thursday’s session buying .7495, a level that it continues to oscillate around in early Asian trade this morning. “The small lift in iron ore prices and easing financial market stress supported AUD”, wrote Elias Haddad, a […]
After a wobbly start to the week, the Australian dollar has found its footing
Markets

The Australian dollar continues to sink

The Australian dollar continues to sink, weighed down by growing bets that the Reserve Bank of Australia (RBA) will cut interest rates in less than two weeks time along with ongoing US dollar strength. After closing Wednesday’s session buying .7477, the AUD/USD sunk further in early Asian trade on Thursday, […]
The Australian dollar continues to sink
Markets

The Australian dollar is looking wobbly, falling over 1% on Tuesday

The Australian dollar continued to weaken in overnight trade, weighed down by the combination of US dollar strength, expectations for a rate cut from the RBA in August and weakness in crude and iron ore prices. “Yesterday’s RBA minutes with its dovish take and concerns about the activity side of […]
The Australian dollar is looking wobbly, falling over 1% on Tuesday
Markets

Australia’s wild jobs report may rattle the Australian dollar

It was a quiet session for the Australian dollar overnight, gravitating around the 76 cent level for much of US and European trade. At the close in New York, the AUD/USD finished the session buying .7605, down 0.21% on Tuesday’s closing level. At one point in early European trade it […]
Australia’s wild jobs report may rattle the Australian dollar
Markets

A higher Australian dollar isn’t hurting the economy for now

The Reserve Bank of Australia (RBA) has stated a higher Australian dollar could “complicate” the country’s economic transition for many months. While some may disagree, believing the RBA should take a more aggressive approach to talking down the currency, it appears the bank remains comfortable with the level of the […]
A higher Australian dollar isn’t hurting the economy for now