Markets extend gains after Fed
Global markets improved for a second day on Thursday as hopes for further rate cuts boosted sentiment.
US shares gained, with the Dow Jones index up 1.3% and the S&P 500 up 0.2%. The tech-focused Nasdaq weakened.
In FX, the AUD/USD slipped from a one-year high, with the pair down 0.2%.
NZD/USD fell 0.1%.
USD/CNH lost 0.1%, while USD/SGD also fell 0.1%.
Australian jobs slip, but unemployment improves
The Aussie was lower yesterday after a drop in November employment, but a better reading in the unemployment rate moderated losses.
The number of employed persons fell by 21.3k.
The unemployment rate was better, however, steady at 4.3% versus the 4.4% forecast.
Despite early losses, the AUD/USD remains near one-year highs.
Chinese yuan strongest since September 2024
While most Asian currencies have recently weakened against the US dollar, the Chinese yuan has continued to outperform.
The CNY’s gains have been significant because, firstly, the moves run contrary to other moves in Asia (significantly, the Japanese yen has been lower all year) but also because the gains have been seemingly supported by the People’s Bank of China.
The yuan’s strength has impacted local companies, with the state-owned financial newspaper The Securities Times reporting overnight that Chinese corporates have seen a sudden surge in hedging activity.
Overnight, the onshore USD/CNY fell to its lowest level since September 2024, while the offshore USD/CNH approached 18-month lows, testing key support at 7.0500.
Aussie still at highs
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 8 – 12 Dec
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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.
