Currency Market Analysis

Apr 07, 2020 | Currency Market Analysis

Global Themes

US dollar falls as Dow jumps 7.7%

The US dollar was weaker as a big jump in US equity markets with the benchmark Dow Jones up 7.7% overnight.

US shares were higher as new cases of coronavirus in the United States decline don Sunday for the first day since 21 March.

The US Dow Jones’ jump was one of the 20 largest percentage gains in its history.

USDSGD lower

The USDSGD fell 0.4%.

The euro fell to the lowest level in six weeks.

The Japanese yen fell to the lowest level in two weeks.

Aussie data in focus

Australian data swings into focus today with trade numbers and the Reserve Bank of Australia meeting.

The trade balance, for the month of February, is expected to show a sharp decline with the impact of both the Chinese New Year and the coronavirus outbreak likely to weigh on the number.

The market is looking for a AUD3.8b surplus down from AUD5.2b in the previous month. The release is due at 9.30am.

Today’s RBA meeting, due at 12.30pm might be underwhelming after the central bank cut rates twice last month and introduced its first-ever quantitative easing program.

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