Caution Over Weakness in Oceania Currencies Amid Risk-Off Sentiment
13.09.2021
- Rice · Fiscal Expenditures
- Turkey: Industrial Production
Last weekend, the three major U.S. stock indices all fell, resulting in a market environment characterized by falling stock prices, rising interest rates, and higher oil prices. The VIX (fear index) rose by more than 10% and has now surpassed the key threshold of 20, standing at 20.95. The Nikkei 225, which has remained in the 30,000-yen range, currently stands at 30,320 yen.
Risk-averse sentiment is prevailing in the foreign exchange market, with cross-yen pairs edging lower. Oceania currencies, in particular, are facing resistance on the upside; the AUD/JPY pair erased all of its gains from last Friday’s Asian session during U.S. trading hours and is currently trading around 80.91. The Australian dollar is also weakening against the U.S. dollar, with the AUD/USD pair attempting to fall again around the 0.736 level.
Apart from Turkey’s industrial production and current account balance data scheduled for 4:00 p.m. CET today, and U.S. fiscal spending data scheduled for 3:00 a.m. EST, no major economic indicators or key speeches are scheduled for today.With no major events this week aside from the UK employment report on Tuesday the 14th, US initial jobless claims on Thursday the 16th, and the University of Michigan’s preliminary September consumer sentiment index on Friday the 17th, price movements are likely to be straightforward. We will be closely monitoring how the US dollar, which has been rising recently, will move.
Author: Keisuke Sakurai
