Tech sell-off drives further USD gains
The US dollar continued to gain overnight as financial markets saw further selling notably driven by US technology stocks.
Despite a better-than-expected result from leading chip-make Nvidia, US tech stocks extended losses, with the Nasdaq falling 2.2% overnight and now down 8.1% from last month’s highs.
The biggest gains for the greenback were against the commodity currencies. NZD/USD fell 0.4% while AUD/USD lost 0.6%. The Canadian dollar fell 0.3%.
In Europe, the moves were more mixed, with EUR/USD down 0.1% but GBP/USD gained 0.1%.
The USD/CNH was steady while USD/SGD gained 0.1%.
Aussie hits three-month lows
The Aussie remained pressured following this week’s Federal Reserve minutes with AUD/USD at new three-month lows overnight.
The Fed’s October minutes reveal a divided view on a potential December rate cut. While many members said it wasn’t appropriate, several believed it “could well be.” Most warned that more cuts might fuel inflation.
Additionally, a stronger than expected, much-delayed US September jobs report also caused rate-cut expectations to ease. Last night, the September non-farm payrolls was reported at 119k, well above the 59k expected, The October report has been delayed indefinitely.
As for AUD/USD, the pair has fallen below support around 0.6450 with the next downside target to 0.6400.
Looking higher, the pair faces resistance at 0.6516 (21-day moving average), with the next hurdle at 0.6529 (50-day).
As per below, the AUD/USD is at the lower end of recent trading ranges, providing an opportunity for AUD buyers looking to take advantage of the lowest levels since August.
JPY meltdown extends; SGD/JPY at record
Bank of Japan board member Junko Koeda signalled a possible rate hike next month, stressing the need to move toward normalization. “Real interest rates are still significantly low,” she told business leaders in Niigata on Thursday, “and the bank needs to proceed with normalization.”
USD/JPY has climbed past 157, brushing off recent official warnings. The pair now trades at a ten-month high. Japan’s Ministry of Finance and central bank appear comfortable with the current range between 155 and 157, showing no urgency to intervene.
In other markets, the JPY has been down sharply this week. The AUD/JPY traded above 102 for the first time since August 2024 although the pair retreated later in the session. The NZD/JPY hit a three-month high before later easing.
Most notably, SGD/JPY reached a more than 35-year high.
Aussie at three-month lows
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 17 – 22 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.
