The key event of the Asian session is the Australian employment report. Japan will release trade data and China will update housing prices. Later, market participants will closely monitor US jobless claims and the Philadelphia Fed index. Federal Reserve Chairman Powell will deliver a speech.
Here’s what you need to know on Thursday, October 19:
Positive market sentiment following strong economic data from China was offset by rising tensions in the Middle East, rising yields and crude oil prices. The Dow Jones lost 0.98%, and the Nasdaq fell 1.62%. Meanwhile, the price of WTI crude oil rose by 1.70%.
Risk-off sentiment and rising US yields boosted the dollar. The Dollar Index (DXY) rose by 0.35%, surpassing the level of 106.50 points. The 10-year Treasury yield rose to 4.92%, hitting its highest level since 2007. Federal Reserve Chairman Powell is scheduled to speak at the Economic Club of New York on Thursday, and his comments will be followed close up.
On Wednesday, U.S. housing market data came in mixed numbers. Building Permits fell in September to 1.475 million, better than the 1.45 million expected, while housing starts rebounded to 1.35 million, slightly below the market consensus of 1.38 million. The Beige Book noted that economic activity had “little to no change” during September and early October.
Existing Home Sales, the Philadelphia Fed index and the weekly jobless claims report will be released in the United States on Thursday. New signs of a robust economy and tight labor market could keep demand for the US dollar.
Gold It initially rose and reached the level of $1,963, its highest level in two months, despite the movements in the bond market. Subsequently, the yellow metal retreated and settled around $1,950.
The EUR/USD pair again failed in its attempt to break above 1.0600 and turned lower, finding support around 1.0530. Risks remain tilted to the downside, but consolidation could persist if the pair holds above 1.0520.
The pound initially rose after the publication of higher-than-expected inflation data in the United Kingdom, but subsequently gave up all gains. The GBP/USD pair is dangerously close to the key support zone around 1.2120.
USD/JPY posted its highest daily close since October last year, slightly below the 150.00 area. A rally above that area could lead the pound higher. A recovery above that zone could trigger intervention by Japanese authorities, triggering volatility.
The AUD/USD pair It was rejected above the 20-day SMA and reversed course near 0.6400, falling towards 0.6330. The key support level is at 0.6285 (October lows). Australia will report on September employment early on Thursday.
The New Zealand dollar (NZD) lagged once again. The technical outlook for NZD/USD points to further losses as it posted the lowest daily close in almost a year, below 0.5860.
The Canadian dollar (CAD) did not benefit from the recovery in crude oil prices. USD/CAD surpassed 1.3700 and closed above, leaving room for further upside potential.
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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.
