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Trade worries continue to hurt risk, ASX touches 3-week lows. USDCAD hits 4-week highs

jeffriess
November 21, 2019
by Joseph Jeffriess, Market Analyst

Trade worries continue to drive risk markets lower.

Overnight news that the US and China might now sign the phase-1 trade deal in 2019 and President Trump threatening tariff hikes maintained selling pressure on equity indexes. US indexes continued to retreat the Dow Jones lost 0.40% the Nasdaq 0.51%. Shares in Europe also felt the heat losing ground. The FTSE was the worst performer losing 0.88% but political worry is another factor in the UK atm. Local and Asian stocks have been sharply lower today with late fightback being seen atm. The Hang Seng, 1.63% lower. The ASX is 0.73% lower after seeing heavy losses in yesterday’s session.

Risk currencies had a lower to mixed night as trade and the FOMC minutes influenced the USD. Commodity currencies like the AUD and NZD had weaker nights, the NZD finished 0.21% lower while the AUD closed 0.37% lower. The EUR and GBP pared losses to finish flat. The USDCAD jumped to new 4-week highs overnight adding 0.28%.

Traders will be watching for further trade updates tonight and we have key news at 11:30 pm for the EUR, ECB Monetary Policy Meeting Accounts. This will be followed by BOC Governor Poloz speaking at 12:40 am

Please see below today’s market update video including a breakdown of the daily USDCAD and GBPUSD daily charts.

Good trading from Eightcap.
All times are AEDT.