It’s another day in the red for the dollar as the prospect of a government shutdown and weaker equities performance weighed on the U.S. currency.
Meanwhile, crude oil took a break from its climb and dragged the positively-correlated Loonie along with it. BOC tightening doubts also appeared to come into play.
- Empire State manufacturing index fell from 18.0 to 17.7
- Tumble in General Electric shares weighs on Wall Street
- Bitcoin plummets to its lowest level in six weeks
- New Zealand GDT auction yielded 4.9% gain in dairy prices
- U.K. CB leading index posted another 0.2% decline
Crude oil takes a breather
Well, that was fun while it lasted! Black Crack seemed exhausted from its ascent and bulls thought it was high time to book some profits.
- WTI crude oil fell to $63.73 per barrel (-0.9%)
- Brent crude oil is down to $69.15 per barrel (-1.6%)
Copper also took hits, following the previous day’s dip in iron ore prices on concerns about weaker demand from China. Gold, on the other hand, was still in the green as a bit of risk aversion returned to the markets.
- Gold is up to $1,342.30 per troy ounce (+0.37%)
- Silver is up to $17.250 per troy ounce (+0.35%)
- Copper is down to $7,111.50 a tonne (-1.37%)
The slump in energy and metals also took its toll on related sectors on Wall Street, leaving the indices in the red by the end of the day.
- Dow 30 index is down 10.33 points to 25,792.86 (-0.04%)
- S&P 500 index is down 9.82 points to 2,776.42 (-0.35%)
- Nasdaq is down 37.38 points to 7,223.69 (-0.51%)
The same can be said for cryptocurrencies as bitcoin and its buddies fell through significant tech levels on crackdown fears and prompted a massive selloff.
Major Market Mover(s):
JPY & CHF
The yen and franc took advantage of dollar weakness to grab some risk-off flows from the markets, with the latter taking the top spot.
AUD/JPY retreated from a high of 88.19 to a low of 87.72, GBP/JPY is testing support at 152.50, NZD/JPY is down to 80.35, and USD/JPY fell to 110.31.
USD/CHF also tumbled below the .9600 handle to a low of .9579, AUD/CHF is down to .7640, and CHF/JPY advanced past the 115.00 handle.
The oil-related Loonie suffered a double-whammy from weaker Black Crack prices and easing up of positions ahead of the BOC statement. Still, the Canadian currency managed to outpace its North American peer.
CAD/JPY slipped from a high of 89.29 to a low of 88.60, EUR/CAD bounced back up from 1.5144 to a high of 1.5268, AUD/CAD is up to .9925, and NZD/CAD climbed to .9044.
The dollar was the weakest of the forex bunch due to lingering concerns about a potential government shutdown, a less-impressive showing from U.S. equities, and resurfacing doubts about Fed tightening.
EUR/USD continued its climb to the 1.2300 mark after dipping to a low of 1.2915, GBP/USD advanced after its pullback to 1.3745 to a high of 1.3800, AUD/USD went on to break past the .7900 mark, and NZD/USD is up to .7285.
Watch Out For:
- 11:30 pm GMT: Australia’s Westpac consumer sentiment index
- 11:50 pm GMT: Japanese core machinery orders (-1.3% expected, +5.0% previous)
- 12:00 am GMT: New Zealand ANZ commodity prices
- 12:30 am GMT: Australia’s home loans (-0.1% expected, -0.6% previous)