Currency Market Analysis

Apr 18, 2018 | Currency Market Analysis

Global Themes

US dollar boosted as Wall Street gains

The USDSGD climbed from three-month highs overnight as US sharemarkets continued to gain.

The US’s Dow Jones jumped 0.9% as technology stocks outperformed.

The USDGSD was up 0.2%.

Aussie down

In other markets, the focus was on China.

From China, first-quarter economic growth numbers – at 6.8% – were in line with expectations. However, a drop in industrial production was seen as concerning.

Commodity currencies like the Australian and New Zealand dollar were weaker.

The AUD also fell after the Reserve Bank of Australia indicated that both wage growth and inflation were unlikely to rise significantly over the next 12 months. As a result, any move in interest rates seems unlikely until 2019 at the earliest.

The euro remained as three-week highs while the British pound eases.

Inflation watch

Inflation remains the key factor over the next 24 hours with major CPI releases from the UK and Europe.

Tomorrow, NZ inflation will be key, with Australian CPI due next Tuesday.

Please note: The Daily Market Update was not published yesterday due to a technical interruption. Our apologies for any inconvenience.

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