Will the decline in Oceania currencies continue due to geopolitical risks?
18.08.2021
- UK Producer Price Index
- South Africa: Consumer Price Index
Yesterday, the three major U.S. stock indices all fell, resulting in a market environment characterized by lower stock prices, flat interest rates, and falling oil prices. Although the yield on the 10-year U.S. Treasury note briefly dropped to 1.22%, it is currently hovering around 1.25%. Gold is forming a triple top on the hourly chart and is currently trading in the $1,785 range.
In the foreign exchange market, currencies of resource-rich nations remain weak, and the AUD/JPY pair fell for the fourth consecutive day, briefly touching 79.4. From a technical perspective, the 200-day moving average is acting as resistance on the daily chart, and with no immediate support in sight, there are concerns that sudden news or economic indicators could trigger further declines.
Today’s economic indicators include the UK Producer Price Index at 3:00 PM, the South African Consumer Price Index at 5:00 PM, the Eurozone Consumer Price Index at 6:00 PM, the US MBA Mortgage Applications Index at 8:00 PM, the Canadian Consumer Price Index and US Housing Starts at 9:30 PM, and the US Weekly Crude Oil Inventories at 11:30 PM.and the release of the U.S. FOMC minutes at 27:00. We will closely monitor whether this brings any change to the ongoing downtrend in commodity-linked currencies.
Author: Keisuke Sakurai
