Currency Market Analysis

Apr 23, 2019 | Currency Market Analysis

Global Themes

US dollar boosted as Nasdaq closes at all-time highs

The US dollar was stronger overnight as the technology focused Nasdaq ended as its highest-ever closing level.

The US earnings season has been strong and this has boosted appetite for US shares and the US dollar.

Euro higher

The euro was higher as it continued to rebound from near two-year lows.

The EUR has been boosted after some better data ahead of tonight’s consumer confidence numbers.

The AUDSGD has rapidly given up the gains seen after Thursday’s solid jobs report saw 26k new jobs (versus the 112k expected).

CPI the key driver

Looking to the upcoming markets, from Japan, local inflation is due at 2.00pm, while from the US, new homes sales will be closely watched tonight.

Tomorrow’s inflation report with the result likely to drive the AUD’s short-term momentum.

The market is looking for a relatively low 0.2% for the March quarter and 1.5% for the year.

With bond markets predicting the Reserve Bank of Australia will cut official interest rates by October, a low inflation reading is likely to add weight to these market expectations.

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