US data weighed on the dollar, which remains under pressure awaiting more jobs figures, including Friday’s NFP. The ADP employment report will be released on Wednesday. The key event in Asian time will be the decision of the Reserve Bank of New Zealand. The RBA’s Lowe will speak after the central bank break. It looks like the dollar will extend its losses, but it could get some help from the new economic reports.
Here’s what to know on Wednesday, April 5:
The Dollar Index posted its lowest close in two months on Tuesday, after falling for the second day in a row. Economic data did not help the USD on Tuesday. Job offers fell to 9.93 million, the lowest level since May 2021, while factory orders fell 0.7%.
US economic numbers pushed US yields further lower and Wall Street was powerless to do anything about it. the dow Jones lost 200 points or 0.59%, the Nasdaq fell 0.52% and the S&P 500 0.58%.
He and in Japan outperformed during the American session, helped by lower yields and deteriorating market sentiment. Consequently, USD/JPY lost ground for the second day in a row, breaking below 132.00.
The EUR/USD it continued to rise and approached 1.1000. The pound also outperformed as the pair GBP/USD jumped to 1.2500, breaking above the highs of December and January.
the australian dollar weakened after the Reserve Bank of Australia (RBA) pause; however, the AUD/USD pair remains bullish and remains above 0.6720. RBA Governor Lowe will speak on Wednesday.
On Wednesday, the Reserve Bank of New Zealand will announce its decision. A rate hike of 25 basis points is expected, up to 5%. The NZD/USD pair is trading above 0.6300, its highest level since mid-February.
Crude oil prices ended flat on Tuesday, sustaining Monday’s recovery after the OPEC+ production cut. If prices rise again, it would be another problem for central banks around the world.
The bulls of Gold celebrated declining US yields. The XAU/USD pair finally broke above $2,000 and remains close to recent highs in the $2,020 area, with strong momentum. Silver joined the rally and shot up to $25.00, the highest level in a year.
Did you like this article? Help us with your comments by answering this survey:
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
