Currency Market Analysis

Mar 29, 2021 | Currency Market Analysis

Global Themes

Greenback lower as US inflation numbers calm fears

Global sharemarkets rallied, currencies tied to growth gained and the US dollar fell at the end of last week as a weaker US inflation read helped markets.

The PCE price index, the Federal Reserve’s favoured measure, was in line with expectations at 0.1% over the month with last month’s result revised lower.

US shares rebounded with the Dow Jones up 1.4% and the Nasdaq up 1.6%.

Commodity currencies rebound

The USDSGD fell 0.3%.

The Aussie and other major commodity currencies recovered.

The NZD rebounded after suffering suffered its biggest weekly fall in over six months last week after a range of new measures to curb housing growth were introduced on Tuesday.

The US dollar was higher versus other major currencies with the euro and Japanese yen both lower.

Jobs risk

Looking to the week ahead, the final week of the month traditionally sees data releases dry up – and it’s even more notable in the last week of the quarter.

However, with the US still trading on Good Friday, a quirk this year sees the US non-farm payrolls released over Easter creating the potential for big moves over the break.

Otherwise, Chinese activity data, due on Wednesday and Australian retail sales and trade numbers, due on Thursday, are the major events in the shortened week.

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.