Should We Pay Attention to the Inverse Correlation Between the U.S. Dollar and Oceania Currencies?
04.01.2022
- U.S. JOLTS Survey
- U.S. ISM Manufacturing PMI
Yesterday, in the U.S. market, the three major stock indices all rose, resulting in a market environment characterized by higher stock prices, higher interest rates, and flat crude oil prices.Commodity markets fell, with gold dropping from $1,827 to $1,805. Meanwhile, the Nikkei 225, trading on its first day of the new year, rose strongly from the morning session, gaining about 1.38% from the previous day and trading in the 29,200-yen range.
In the foreign exchange market, while cross-yen pairs are generally falling, the U.S. dollar has remained firm, with USD/JPY rising to around 115.56. GBP/JPY fell to 154.98 but rebounded, finding support at the 75-period moving average on the hourly chart.Oceania currencies are showing even greater weakness against the yen than the pound, with the Australian dollar/yen pair falling from 83.85 to 82.83.
Today’s schedule includes German retail sales at 16:00, the Swiss Consumer Price Index at 16:30, the French Consumer Price Index (final reading) at 16:45, the German unemployment rate at 17:55, the UK Manufacturing PMI (final reading) at 18:30,UK mortgage approvals and UK mortgage-backed securities volume at 18:30, Canadian industrial product prices and Canadian raw materials price index at 22:30, and the US ISM Manufacturing PMI and US JOLTS survey at 24:00.We will monitor currency strength and weakness while paying close attention to economic data releases from European through U.S. trading hours.
