Market News & Analysis

USD rebounds; gold reverses weekly gains

Apr 12, 2019 | Market Update

High-impact economic news:

09:30 NZD Business NZ Manufacturing Index
12:30 AUD RBA Financial Stability Review
TBA CNY Trade Balance

USD:

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.

AUD:

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:

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.

EQUITIES:

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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