USD/JPY, Nikkei 225, AUD/USD: BOJ may push back against mounting rate hike bets
USD/JPY tumbled on Thursday on speculation the BOJ may move pre-emptively to lift interest rates before wage pressures have materialised. Such a move would be economically risky and go against recent BOJ statements.
USD/JPY: BOJ not giving up on abolishing negative interest rate policy despite obvious risks
Bank of Japan (BOJ) Governor Kazuo Ueda is not giving up on normalising monetary policy despite significant uncertainty over the outlook for the Japanese and global economies, putting USD/JPY under modest pressure on what’s been an otherwise quiet session in Asia.
AUD/USD, EUR/USD: Downside momentum building as key levels give way
AUD/USD and EUR/USD are looking vulnerable on the charts, pulling back in recent days on the back of disappointing domestic economic data. With uncertainty over the US, Eurozone and Chinese economic outlook elevated, it comes across as the type of environment in which the US dollar would normally shine.
AUD/USD, ASX 200: Three-peat of hawkish disappointment under the RBA’s new leadership
The question now for AUD/USD and ASX 200 is whether the tone truly reflects what the RBA is thinking, or will we see a repeat of recent months where subsequent commentary has been far more hawkish in nature?
AUD/USD, USD/CNH: PMIs suggest China’s economy is nearing stall speed
Chinese economic activity is nearing stall speed with the government’s purchasing managers indexes (PMIs) falling further in November, surprising markets to the downside for a second consecutive month.
Gold needs plenty to go right to maintain its bullish momentum
Gold is knocking on the door of record highs heading into what has recently been an extremely strong period for bullion prices. But having rallied so hard since early October, it comes across as being priced for perfection near-term.
Gold, AUD/USD: Softer US dollar and bond yields provide window for upside
A softer US dollar has helped AUD/USD and gold push towards key technical levels, suggesting the near-term price performance may determine their longer-term trajectory as we head towards 2024.
USD/JPY: Offshore drivers remain in control unless the BOJ can normalise policy
USD/JPY traders barely acknowledged the release of Japan’s October inflation report, reinforcing the view the only thing that matters for the pair right now is developments in the US economy, unless the Bank of Japan (BOJ) signals or starts to normalise monetary policy.
USD/JPY, AUD/USD: Beware backing the buck on volatile jobless claims data
An unusually large reaction to volatile second tier US economic data has boosted the US dollar, seeing USD/JPY and AUD/USD reserve part of their early week moves. But whether it is justified is contentious, suggesting there may be grounds to fade.
Gold’s probe above $2000 may determine its longer-term trajectory
With the US dollar index falling through its 200-day moving average while benchmark US bond yields remain contained, it should come as no surprise that gold has pushed back towards $2000 per ounce over the past few days.
Nasdaq 100: Macro takes the wheel as Nvidia clears high earnings hurdle
With near-term earnings risk now accounted for among the ‘magnificent seven’, it means macroeconomic and bond market movements will likely dictate how the Nasdaq 100 closes out 2023.