Greenback turns from highs as AI sell-off hits markets
The US dollar reversed from 18-month highs overnight as a sharp sell-off in AI-related shares drove investors into bonds, pushing yields lower and weighing on the greenback.
While AI stocks were lower, other sectors strengthened, a rotation that allows US shares to end higher in the overnight session.
The Swiss franc was the strongest major currency as investors moved towards traditional safe havens, while the Australian dollar suffered the biggest losses.
Aussie tumbles after jobs shock
The Aussie was the weakest major currency, with AUD/USD falling as much as 1.1% to a three-month low after a surprisingly weak Australian labour market report.
Employment fell and the unemployment rate rose, prompting markets to reduce expectations for further Reserve Bank of Australia rate hikes.
The jobs disappointment added to pressure on the Aussie as weaker global risk sentiment weighed on growth-sensitive currencies.
US dollar weaker across Asia
The US dollar was mostly weaker across Asia as falling US bond yields weighed on the greenback.
USD/JPY fell 0.2%, reversing from one-month highs.
USD/SGD also turned sharply lower after reaching two-month highs following Wednesday’s Monetary Authority of Singapore decision.
USD/CNH, which largely missed the US dollar’s recent rally, also declined and returned to fresh three-year lows.
Aussie lower across markets after jobs report
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 12 – 17 October
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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.
