US tech shares, Bitcoin hit by selling
The US dollar was higher as financial markets extended their recent weakness to a fourth day with the US sharemarket lower again overnight.
The sell-off was seen across markets with the US Dow Jones index down 1.1% – now down 5.2% from recent highs. Tech stocks led losses with the Nasdaq down 1.2% while Bitcoin fell below USD90k for the first time since April.
In FX, the stronger US dollar saw the EUR/USD down 0.1%, GBP/USD down 0.1% while USD/JPY gained 0.2%.
The AUD/USD gained 0.2% while NZD/USD was flat.
The USD/CNH was also flat while USD/SGD fell 0.1%.
Aussie rebounds from support after RBA minutes
The Aussie was one of the few markets to gain yesterday after the Reserve Bank of Australia signalled a steady hand in its November meeting minutes, suggesting interest rates will likely stay put as long as economic data holds up.
The central bank kept rates unchanged on November 4 after three cuts earlier this year, citing stronger inflation, rising consumer spending, and a rebound in the housing market.
Still, the board left the door open to more action if growth falters or the job market takes a hit.
AUD/USD rebounded from support near 0.6450 yet again yesterday.
The next resistance levels are 0.6519 (100-day moving average) and 0.6521 (21-day moving average).
Yen hit hardest as Fed rate cut bets ease
Fed Governor Christopher Waller and Vice Chair Philip Jefferson raised fresh concerns about the labour market this week, backing the case for looser policy.
Waller repeated his call for a rate cut in December, pointing to soft hiring trends and reports of rising layoffs. Jefferson echoed the warning, saying risks to jobs now outweigh inflation worries.
Both downplayed the impact of tariff-driven price pressures, calling them temporary, and noted that core inflation is edging closer to the Fed’s 2% goal.
However, despite the comments, markets continue to step back from the chance of a Fed rate cut. Market pricing for a December cut has fallen from 67% one week ago to 45% now (source: Bloomberg).
USD/JPY is hovering near a ten-month high. Key support levels sit at 153.55 (21-day average) and 151.72 (50-day average), where dollar buyers may step in.
The Japanese yen has been weaker in other markets with the AUD/JPY near 18-month highs and NZD/JPY up three-month highs.
US gains across markets
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.
