Aussie dollar declines to a fresh low since November 2020, down 0.09% intraday as I write. One AUD is buying 0.7141 US cents. #audusd
US Weekly Jobless Claims 348K, exp: 365K, prev 375K
Dollar king
The greenback is one of the best performers overnight, reaching its highest level against the Euro and Aussie, with the Swiss Franc and Japanese yen also outperforming.
The increased demand for the US dollar is not because of the expectations that the Fed will start to taper their bond-buying program at the end of this year, because that isn’t new. It’s been developing into the markets for a while now. The reason we are seeing the surge in the US dollar is the increasing concerns over a slowing global economy.
More restrictions as Delta Variant cases rise, and the durability of the vaccine.
Lower demand from China on raw materials didn’t help commodity currencies, with the Aussie dollar at a nine-month low.
AU Unemployment data:
Despite positive unemployment data yesterday, the Aussie dollar lost over 1.15% overnight.
Australia managed to create 2,220 jobs in July vs an expected 46,200 loss.
Commodities:
The price of iron ore hit its lowest levels this year, only three months after they hit all-time highs in May.
Crude oil prices continue to slide over concerns about the demand outlook in Asia, trading-month low and on track for a sixth successive daily decline. #markets#economy#oil#dollar