Should we focus on the inverse correlation between the U.S. dollar and Oceania currencies?
04.01.2022
- U.S. JOLTS Survey
- MIS Manufacturing Index
Yesterday, the three major U.S. 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 the 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 after 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 AUD/JPY falling from 83.85 to 82.83.
Today, at 4:00 PM, German retail sales; at 4:30 PM, Swiss CPI; at 4:45 PM, French CPI (final); at 5:55 PM, German unemployment rate; at 6:30 PM, UK Manufacturing PMI (final);UK mortgage approvals, UK mortgage lending, at 10:30 PM: Canadian industrial product prices, Canadian raw material price index, and at 12:00 AM: US ISM Manufacturing PMI and US JOLTS survey. We will closely monitor currency strength while paying close attention to the release of economic indicators from European to US trading hours.
Author: Keisuke Sakurai
