Should we keep an eye on the strength of Oceania's currencies?
26.05.2021
- Remarks by U.S. Federal Reserve Vice Chair Quarles
- U.S. Weekly Crude Oil Inventories
Yesterday, stock prices fell in the U.S. market, creating a risk-off sentiment characterized by falling stock prices, a weaker U.S. dollar, and lower interest rates. The U.S. April new home sales figures (month-over-month), released yesterday, came in at an annualized rate of 863,000 units, falling short of market expectations. Bonds were bought, and yields on both 10-year and 30-year U.S. Treasury bonds declined. Crude oil prices remained flat around $65.80.
In the foreign exchange market, the Australian dollar is once again on an upward trend, with the AUD/USD pair currently hovering around 0.778 as it aims to reach last week’s high. While the U.S. dollar is showing signs of weakness, the Australian dollar is also strong against European currencies such as the euro and the pound, and the AUD/JPY pair has rebounded sharply to around 84.7. The pound is currently the weakest currency against the dollar, with the GBP/USD pair trading around 1.415.
Today, the French Consumer Confidence Index and the French Business Climate Index are scheduled for release at 3:45 p.m. CET. As we move into U.S. trading hours, the U.S. MBA Mortgage Applications Index is scheduled for 8:00 p.m., remarks by U.S. Federal Reserve Vice Chair Quarles at 11:00 p.m., U.S. weekly crude oil inventories at 11:30 p.m., and a U.S. 5-year Treasury auction at 2:00 a.m.We will be watching closely to see if the price movements on this mid-week day at the end of the month provide any new direction.
Author: Keisuke Sakurai
