Become a client

Currency Market Analysis

Jan 18, 2021 | Currency Market Analysis

Global Themes

Aussie nears two-week lows as US shares fall

  • Aussie slips in line with US markets
  • AUDUSD nears two-week lows
  • US presidential inauguration, central banks, key this week

AUD lower

The Australian dollar was mostly weaker on Friday with sharp drops in US sharemarkets hitting the currency.

The Aussie was also weakened by falls in key commodity markets.

US shares dropped as key energy and banking stocks fell. The benchmark Dow Jones index lost 0.6%.

The US sharemarket fell despite news on President-elect Joe Biden’s proposed USD1.9 trillion stimulus package.

Commodities down

The AUDUSD fell 1.0%.

The Aussie was pressured as crude oil fell 2.3% and copper fell 1.8%.

The AUDEUR fell 0.3% while the AUDJPY lost 0.9%.

Chinese data

FX markets face a major week ahead with the US presidential inauguration and key central bank meetings the highlights.

Today, Chinese data, including December-quarter GDP and latest industrial production numbers, is due at 1.00pm AEDT.

Tonight, US markets are closed for the Martin Luther King Jr holiday.

Thursday brings Australian employment, decisions from the Bank of Japan and European Central Bank and, of course, the closely-watched US presidential inauguration.

Get the daily currency market analysis in your Inbox

Published five days a week, this newsletter provides day-to-day trends and activities affecting the market in easy-to-understand snapshots.