Wall Street wandered uncertainly last night as it weighed up sex scandals and the impact of releasing excess Mississippi water over a spillway. Dow down 47.
John Kicklighter, Currency Strategist at FXCM, argues it is difficult to see the USD putting in a genuine rally without a general retreat in risk aversion worldwide.
Wrap of events affecting the market on Friday night and the weekend and a preview of the week ahead.
In the wake of yet another bank reserve requirement hike, the question arises as to whether China will see more interest rate rises or not.
A big drop from the open soon turned into a sustained rally last night as commodities reversed and panic subsided. Dow up 65.
Market analysts at FXCM suggest the technical target for the Australian dollar at present is 1.04 against the US dollar.
A perfect storm for oil saw that commodity hammered last night, taking stock indices down with it. Dow down 130.
China’s CPI was up 0.1% in April to provide a 5.3% annual measure, ahead of expectations.
There were no measures to either positively or negatively shock any particular stock market sector, but nor was there much burden removed from RBA monetary policy in last night’s Budget.
Current US dollar weakness is similar to trends in 1995 and while the rationale for the weakness has been justified, ANZ cautions against assuming it will continue.