Antipodean Surge as Yen Slides: Wednesday Market Pulse

Hello, traders. Welcome on Wednesday. Today we’re working with a fairly packed calendar, although most of the key data has already been released. Early in the session, we received inflation numbers from Australia, which came in higher than expected at 3.8% vs 3.6%, supporting the Australian dollar. We also had the interest rate decision from New Zealand, where the RBNZ delivered a 25 bps cut, accompanied by a statement and press conference. Despite the cut, the overall tone was perceived as supportive, which immediately boosted antipodean currencies.

Still ahead of us, we have the Autumn Forecast Statement from the UK — an important event for the British Pound — as well as US unemployment claims and durable goods orders, which will likely shape the second half of the trading day. Until then, midday volatility should remain limited as Europe goes into the lunch slowdown.

On the currency market, the strongest performers are clearly the New Zealand dollar — currently the strongest currency of the session — and the Australian dollar. Both are climbing sharply on the back of today’s data and central bank communications. On the opposite end, Japanese Yen is under heavy pressure, weakening sharply across the board. We can also see firm gains on the Swiss franc and Canadian dollar, while the US dollar is flat, stabilizing after yesterday’s significant decline.

Looking at indices, Monday and Tuesday delivered notable bullish sessions, and Wednesday so far continues this positive tone. Futures remain on the green side, supporting a risk-on environment heading into the American session.

As for the commodities, precious metals are trying to push to the upside again, although the momentum is not spectacular. In contrast, oil is sliding lower, extending its recent weakness and printing new mid-term lows yesterday. This keeps the sentiment on crude oil clearly negative for now.

We now await US data to see if the second half of Wednesday will bring renewed volatility or a continuation of the current slow grind.

Source: https://www.axiory.com/analytics/market-news/antipodean-surge-as-yen-slides-wednesday-market-pu