Will the decline in crude oil prices cause Oceania currencies to fall?
20.09.2021
- Canada: Housing Price Index
- Germany: Producer Price Index
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 lower oil prices. The VIX (fear index) rose again, surpassing the key 20-point threshold to reach 20.8. The Russell 2000 recovered toward the close and is currently trading around 2,236.
In the foreign exchange market, the Australian dollar—a commodity-linked currency—is facing resistance at higher levels amid falling crude oil prices, and the downward trend continues. The AUD/USD pair has fallen for three consecutive days, dropping from last Friday’s high of 0.731 to 0.723, and has continued to slide significantly during today’s Asian trading session. From a technical perspective, it will be important to closely monitor whether the pair finds support at its recent low of 0.714.
Apart from the German Producer Price Index at 3:00 PM, the Canadian House Price Index at 9:30 PM, and the U.S. NAHB Housing Market Index at 11:30 PM, no other major economic indicators or key speeches are scheduled for today.This week, Chinese markets will be closed until the 22nd for the Mid-Autumn Festival. Additionally, the U.S. FOMC meeting is scheduled for Wednesday the 22nd, the UK interest rate announcement for Thursday the 23rd, and U.S. new home sales data for Friday the 24th. We will keep a close eye on price movements at the start of the week while also monitoring trends in crude oil prices.
Author: Keisuke Sakurai
