Resurfacing trade tensions dampened the mood in the financial markets once more, dragging the commodity currencies behind their peers.
- NAHB housing market index fell from 68 to 60 vs. 67 consensus
- FOMC member Williams: U.S. economy and jobs market strong
- Williams: “Rates are still very low”
- Bitcoin slumps to new lows below $5,000
Risk-off mood in Wall Street
U.S. session traders must’ve been busy thinking about their Thanksgiving dinner plans as they weren’t very hungry for risk. Resurfacing worries about trade tensions on APEC leaders’ inability to come up with a joint statement during the summit also kept jitters in play.
In Wall Street, the slump in Apple shares is being blamed for the tech sector selloff that weighed on indices.
- Dow 30 index is down 395.78 points to 25,017.44 (-1.56%)
- Nasdaq is down 219.40 points to 7,028.48 (-3.03%)
- S&P 500 index is down 45.54 points to 2,690.73 (-1.66%)
Gold took advantage of safe-haven flows. However, crude oil closed slightly higher after a bit of tossing and turning on hints that Russia might take it slow with production cuts.
- Gold advanced to $1,223.07 per troy ounce (+0.16%)
- WTI rose to $56.76 per barrel after dipping close to $55 per barrel
Upbeat remarks from Williams
After a couple of Fed officials had cautious remarks to end the previous week, FOMC member Williams assured in his speech at the New York City Hispanic Chamber of Commerce that Uncle Sam is doing fine.
He noted that the U.S. economy and the labor market are strong, adding:
“What we’re going to do over the next FOMC monetary policy meeting, we’re going to do what we’ve been doing as best we can – we’re going to find a… gradual path of the monetary policy back to a more normal level of interest rates.”
Williams also pointed out that rates are still very low even though they’ve already hiked.
Major Market Mover(s):
AUD & NZD
The Aussie and the Kiwi were stuck in negative territory for the rest of the day as trade tensions remained the dominant theme in the markets.
AUD/USD sank further to a low of .7277; AUD/JPY tumbled to a low of 81.87; EUR/AUD is up to the 1.5700 handle; AUD/CHF retreated to .7246, and GBP/AUD is up to 1.7626.
NZD/USD declined to a low of .6816; NZD/JPY is down to 76.91; EUR/NZD recovered to 1.6747; GBP/NZD is holding its head above the 1.8800 mark, and AUD/NZD is steady at 1.0665.
Watch Out For:
- 12:30 am GMT: RBA monetary policy meeting minutes (Review their statement here)