The price action so far today is emblematic of a textbook “risk off” day: stocks are falling across the globe, oil is trading off by nearly 3%, bond yields are generally retreating, and the yen is the strongest performing major currency (though we would note that gold bugs still can’t seem to catch a break!).
Key data from Australia and China will be released in the early hours of Thursday, followed by inflation figures from the U.S. later on in Thursday’s session. Thursday’s data releases could have a big impact on the Aussie dollar, especially the AUD/USD pair.
After big overnight falls, the U.S. dollar managed to bounce back a little shortly after the New York open, the Dow was well over 100 points off its earlier lows and the VIX had declined more than 10% from its earlier highs. It wasn’t exactly risk-on, but the situation certainly looked a lot calmer than at the European open.
Tesla Inc boss Elon Musk on Friday offered to save Australia's most renewable-energy dependent state from blackouts by installing $25 million worth of battery storage within 100 days and offering it for free if he missed the target.
The markets might not have been pricing in a U.S. interest rate rise this month, U.S. economic data is maintaining its consistent strength and the Federal Reserve is maintaining its public intention towards raising U.S. interest rates around three times in 2017.
It’s been a whirlwind few hours in the bitcoin world as two tech publications say they have identified the real identity of bitcoin creator, Satoshi Nakomoto, the bitcoin price surged more than $20 in less than an hour to $417 and the Australian police conducted a raid on the supposed founders house within hours!
For more than a year now, commodity prices have been under pressure from the strong U.S. dollar and slowing global demand. This has made a huge dent in the balance sheet of many net exporters of resources, in turn weakening their currencies.