Should We Keep an Eye on the Strength and Weakness 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.U.S. new home sales for April (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. Treasuries declined. Crude oil prices are trading sideways around 65.8.
In the foreign exchange market, the Australian dollar is once again on an upward trend, with the AUD/USD pair currently trading 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 also rebounded sharply to around 84.7.The pound is the weakest currency against the dollar, with the GBP/USD pair currently trading around 1.415.
Today, the French Consumer Confidence Index and the FrenchBusiness Sentiment Index are scheduled for release during European trading hours. As U.S. trading hours begin, the U.S. MBA Mortgage Applications Index is scheduled for 20:00, remarks by U.S. Federal Reserve Vice Chair Quarles at 23:00, U.S. weekly crude oil inventories at 23:30, and a U.S. 5-year Treasury auction at 26:00.I intend to watch the market cautiously to see if price movements in the middle of this final week of the month will reveal a new direction.
