The dollar strengthened to a 14-month high and commodities declined to the lowest level in five years after data added to evidence China’s economy is slowing. Russia’s ruble weakened to a record after the European Union and U.S. imposed new economic sanctions.
Since late March, AUDUSD(CME:ADZ4) has been trapped in a tight range between support at .9200 and resistance at .9500. Over that time period however, the price action has carved out a large head-and-shoulders pattern.
U.S. equity-index futures gained as jobless claims fell and earnings from 21st Century Fox Inc. and CenturyLink Inc. beat estimates. Bonds rose as the European Central Bank kept interest rates on hold, while Australia’s dollar led a decline in higher-yielding currencies.
Australia’s dollar fell by the most in a month against its U.S. counterpart as traders revived bets the nation’s central bank will cut interest rates after unemployment jumped to the highest since 2002.