Market News & Analysis
USD rebounds; gold reverses weekly gains
High-impact economic news:
09:30 NZD Business NZ Manufacturing Index
12:30 AUD RBA Financial Stability Review
TBA CNY Trade Balance
The United States’ economy continues to show signs of strength after the latest Producer Price Index (PPI) beat expectations in March, rising 0.6% compared to a forecast of 0.3%. The index for final demand services edged 0.3% higher compared to analyst expectations of 0.2%. The PPI wasn’t the only piece of positive data. Unemployment claims in the United States fell to 196,000 compared to expectations of 210,000. As a result, the USD rebounded, reversing losses in the previous session.
EUR/USD fell -0.15%
USD/JPY rose +0.58%
USD/CAD rose +0.42%
AUD/USD rose -0.66%
GBP/USD rose -0.23%
The U.S. Dollar Index rose 0.26% to 96.81.
After rallying to multi-week highs, the Australia dollar finished Thursday’s session lower against the majors. The AUD/USD pair fell more than 45 pips to close at 0.7121, wiping out most of the week’s gains. The currency pair remains 0.17% higher for the week.
AUD/CAD fell -0.26%
AUD/JPY fell -0.09%
The biggest driver for the Australian dollar today will be the released of China’s trade balance and the RBA Financial Stability Review, due at 12:30pm AEDT.
Gold was the biggest loser on Thursday with the commodity plunging more than $15 to US$1292.54 per ounce, after three consecutive sessions of gains. The price of silver suffered a bigger blow, falling to its lowest level since December 26. Silver fell $0.26 to US$14.93 per ounce.
In equities, Wall Street stocks closed flat with the Dow Jones falling 14 points while the S&P 500 rose a mere 11 points. The NASDAQ closed the session 16 points or 0.21% lower. Despite the flat start, Australian shares are poised to open the session higher with the SPI Futures up 21 points at 0900 AEDT.
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