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AUD/USD September High While APAC Traders Eye China’s Lending Rates

AUD/USD September High While APAC Traders Eye China's Lending Rates


The financial market seems to be picking up pace as the Australian Dollar surged against the USD overnight. The progress took place after Wall Street traders went back to their risk-taking stance. 

The development helped the DJIA (Dow Jones Industrial Average) close to 0.54% higher. After the market closed, Netflix released its impressive 2021 Q3 numbers. Christopher Waller, the Federal Reserve Governor, stated that the tapering of balance sheet growth might start after authorities announce the next FOMC.

The Fed Governor provided a positive employment outlook, playing down the ongoing inflation concerns. The market may witness significant fluctuations with the upcoming FOMC meeting taking place on November 2nd or 3rd. The short-term Treasury yields for two and 5-year notes fell while the long-end ones increased.

Japan is ready to release its September trade numbers on 20th October. Experts estimate the figures to showcase a deficit of 519.2 billion yen. Afterward, China will release new home prices while traders eye the PBOC’s (People’s Bank of China) 1 and 5-year loan rates. While some expect a massive change, most agree that policies will remain unchanged.

Oil prices surged a notch, despite the API (American Petroleum Institute) increasing its inventory build. As a result, this week’s crude oil stocks surpassed 3.294 barrels, significantly crossing the 2.233 million barrel forecast. Similarly, natural gas prices surged 2%, which is still low for the month.

Meanwhile, the Australian Dollar gained value against the USD overnight. The AUD/USD index tested the September high at 0.7478 before loosening up slightly. The forex brokers Australia witnessed a bullish crossover between the 20 and 50-day SMAs (Simple Moving Averages.) It indicates an optimistic outlook for the currency as it hangs near the psychologically reassuring 0.75 mark.



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