Key Takeaways
- Tech stocks fell after Nvidia CEO Jensen Huang resigned due to allegations of an affair, causing a 0.4% drop in Nasdaq and a 5% loss in Nvidia shares.
- The Australian dollar dropped to its lowest level against the US dollar since January, falling 0.6%, with further losses anticipated towards 0.6710 and 0.6400.
- The euro faced renewed downside pressure as the US CPI data strengthened Fed hiking expectations, impacting EUR/USD.
- Despite the UK economy growing at its fastest pace in two years, the British pound fell 0.3%, showing weakness against better growth indicators.
Tech stocks pressured on Nvidia news
Global markets extended the recent AI- and rates-driven sell-off overnight on news Jensen Huang was forced out of the CEO role at chip-maker Nvidia seeing further losses in technical shares.
Huang was forced to resign after allegations of an affair with a suspected Chinese spy.
The tech-focused Nasdaq lost 0.4% while Nvidia shares lost around 5.0%.
The news sparked a risk-aversion move that boosted the US dollar overnight.
Aussie leads losses
The Australian dollar led losses with the Aussie battler falling to the lowest level versus the US dollar since 23 January.
The AUD/USD fell 0.6%.
From here, a break of key support sets up a longer-term drop to first 0.6710 and further lower to 0.6400.
The NZD/USD lost 0.3% with the kiwi nearing key support at 0.5500.
In Asia, USD/JPY was flat.
USD/SGD was up 0.2% while USD/CNH was flat.
Euro, GBP suffer
The euro’s week has shifted decisively from attempted recovery to renewed downside pressure.
EUR/USD initially benefited from improving risk sentiment and lower oil prices, but Tuesday’s hotter US CPI print, following an already strong payrolls report, reinforced Fed hiking expectations and put US yields and the dollar firmly back in control.
The British pound was lower despite better growth numbers.
GBP/USD fall 0.3% even as the UK economy grew at the fastest pace in two years in the three months to September, expanding by 0.7%. The GBP had recently strengthened thanks to the resilient economy narrative that has underpinned the pound in recent months.
Aussie nears break below 0.6800
Table: Currency trends, trading ranges & technical indicators
Key global risk events
Calendar: 9 – 14 November
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
