USD index hits new 18-month highs
The US dollar jumped to its highest level since April 2025 after a hotter-than-expected inflation report raised the prospect of further Federal Reserve rate hikes.
Headline annual CPI jumped from 3.4% to 3.7%, while core inflation increased from 2.4% to 2.6%.
Global markets were rattled, with the tech-focused Nasdaq down 1.9%, its worst day since June. The US 10-year Treasury yield initially jumped to 5.33% before cooling back to 5.19%, while the benchmark S&P 500 fell 1.1%.
In currency markets, the US dollar’s biggest gains were in Europe. EUR/USD fell 0.4%, while GBP/USD lost 0.5%.
AUD/USD was lower, while NZD/USD fell 0.4%.
In Asia, USD/JPY was broadly unchanged, while USD/CNH gained 0.1%.
Aussie lower ahead of jobs numbers
The Aussie’s overnight fall came ahead of today’s all-important September jobs report.
The August labour market report surprised to the upside, with employment rising by 39,500. However, the unemployment rate unexpectedly climbed to 4.6%.
Markets are already on edge after this week’s NAB business confidence index fell to -13, putting it in the bottom 5% of readings in the survey’s history.
For today’s jobs report, markets are looking for 20,000 new jobs, with the unemployment rate forecast to remain steady at 4.6%. Australian jobs are due at 11.30am AEDT.
USD/SGD surges after MAS surprise hold
USD/SGD posted its biggest one-day gain in a month after the Monetary Authority of Singapore (MAS) surprised markets by leaving monetary policy settings unchanged on Wednesday.
MAS left its S$NEER policy band unchanged, surprising markets that had expected a tightening in policy, according to a Bloomberg poll.
USD/SGD gained 0.4% and reached its highest level since July.
Inflation boost for greenback
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.
