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Currency Market Analysis

Nov 26, 2018 | Currency Market Analysis

Global Themes

Safe havens gains, SGD falls, as Dow nears critical level

The US dollar was higher on Friday as a further selldown in US sharemarkets boosted support for safe havens.

The US’s Dow Jones index dropped 0.7% on Friday as it neared major technical support levels. A break of these levels could spark a broader sell-off that might cause the AUD to weaken.

Markets have also been pressured by falling commodity prices with crude oil down 7.7% on Friday with the so-called “Texas tea” down an incredible 35% since early October.

Brexit losses

The USDSGD climbed 0.2%

The euro and British pound both fell as Brexit worries continued to weigh on both currencies.

Busy schedule

A busy schedule of international data will drive FX markets this week.

Early in the week, New Zealand sees retail sales on Monday with their trade balance numbers released on Tuesday.

From the US, Wednesday night sees September-quarter economic growth numbers while US Federal Reserve chair speaks later that night.

In Australia, Thursday’s September-quarter capital expenditure number – a key reading of business spending – will be the major release.

In Europe, inflation is due on Friday night.

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