Will High Oil Prices Keep Oceania Currencies on the Rise?
13.01.2022
- U.S. Weekly Natural Gas Inventories
- U.S. – Barkin: Remarks by the President of the Richmond Federal Reserve Bank
Yesterday, the three major U.S. stock indices all rose slightly, resulting in a market environment characterized by rising stock prices, interest rates, and crude oil prices. The VIX (fear index) fell by about 4% to around 17.6. WTI crude oil rose to the $82.40 range, approaching its October 2021 high, as the view gained traction that the decline in demand due to the resurgence of COVID-19 infections would be limited.
In the foreign exchange market, cross-yen pairs are trading sideways, and due to the decline in the U.S. dollar, the AUD/USD pair has surged from 0.720 to this month’s high of 0.729. Technically speaking, the AUD/USD has already broken through its recent high on the 4-hour chart, with the next target at 0.744; we will be watching to see if it continues to rise without being held back by the moving average.
Today’s schedule includes Turkey’s industrial production at 16:00 CET, remarks by a member of the Bank of England’s Monetary Policy Committee at 17:45 CET, U.S. initial jobless claims and the U.S. Producer Price Index at 22:30 ET, and the confirmation hearing for Federal Reserve Governor Lael Brainard’s nomination as Vice Chair of the Federal Reserve at 24:00 ET,at 12:30 a.m. (US time), US weekly natural gas inventories; at 2:00 a.m. (US time), remarks by US Richmond Fed President Barkin; and at 3:00 a.m. (US time), a US 30-year Treasury auction and remarks by US Chicago Fed President Evans. We will be watching closely to see if the rally in commodity-linked currencies continues.
Author: Keisuke Sakurai
