Currency Market Analysis

Oct 07, 2021 | Currency Market Analysis

Global Themes

USD reverses from technical highs as shares rebound

The US dollar jumped yesterday, boosted by a broad sell-off in Asian stockmarkets, but a late recovery in New York saw the greenback reverse from recent highs.

The USDSGD neared one-year highs yesterday before falling from these key levels.

Kiwi down despite hike

The Reserve Bank of New Zealand took the plunge yesterday and become only the second major central bank to hike rates since the pandemic but the NZD fell on the move.

The RBNZ was seen as slightly more cautious about its next moves with a difficult global environment causing markets to wind back bet of future hikes.

The euro fell to new lows, extending a recent run of losses, after the European Central Bank’s most recent meeting saw the central bank suggest it was unlikely to significantly reduce monetary stimulus in the near term.

The European Central Bank minutes are released at 7.30pm.

US jobs in focus

The USD will take focus after last night’s ADP jobs, the key private sector reading, beat expectations.

ADP jobs came in at 568k versus forecasts for 425k.

The all-important US non-farm payrolls is released on Friday night.

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