USD weaker during US holiday
The US dollar fell for a fourth straight day as market activity slowed during the Thanksgiving holiday.
The greenback has also been pressured by rising expectations for a Federal Reserve rate cut when the US central bank meets on 11 December (APAC time).
Renewed hopes for a rate cut have boosted US equities, with the Dow Jones up 2.2% so far in this shortened holiday week.
In major FX markets, the euro underperformed after last night’s European Central Bank minutes suggested the bank remains open to further rate cuts. The GBP was mostly steady.
Commodity currencies outperformed.
Aussie, kiwi extend gains
The Australian and New Zealand dollars strengthened, building on gains from earlier this week.
The Aussie was supported by a higher-than-expected inflation reading, while the kiwi rose after Reserve Bank of New Zealand post-rate cut commentary was seen as reducing the chances of further rate reductions.
AUD/USD climbed to its highest level since 14 November – key resistance is now seen at 0.6580 and then 0.6600.
NZD/USD hit one-month highs, with major resistance around 0.5800.
USD/SGD at new lows
The USD weakened across Asia, with notable moves in USD/SGD and USD/CNH.
USD/SGD fell to one-month lows, reversing sharply from six-month highs seen last week.
USD/CNH dropped to one-year lows, with the Chinese yuan supported by stronger equity flows.
Kiwi this week’s leader
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 24 – 29 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.
