News

ForexLive Americas FX news wrap: Australian dollar crushed

Forex news for North American trading on February 26, 2021:

Markets:

  • Gold down $40 to $1730
  • US 10-year yields down 12 bps to 1.40%
  • WTI crude down $1.84 to $61.69
  • S&P 500 down 18 points to 3811
  • USD leads, AUD lags

The reverberations from yesterday’s bond implosion left broader markets in a delicate state. Even as yields turned much lower, FX risk trades couldn’t get a footing. How much of that was month-end and how much was jitters was open to debate.

The big loser was AUD, which fell a whopping 2.2% in what’s been a straight-line fall to 0.77 from 0.80 just yesterday. It went out on the lows as there was no respite.

It was followed closely by the kiwi, which fell almost as much. CAD held up better despite the 3% decline in oil prices but still rose to 1.27 after touching 1.2470 a day ago.

The euro was sucked lower in the US dollar selling. There were some bids into the London fix and it bounced to 1.2145 but fell 80 pips from there and also finished on the lows.

Sterling showed a bit more resilience but continued the fall back below 1.40 and all the way to 1.3888 in early European trading but was higher from there and flat in New York trade overall.

Japanese buyers of Treasuries may have contributed to flows that knocked yields down and propped up USD/JPY in the process as the pair tacked on 30 pips.

Have a great weekend, it was a wild week.

Articles You May Like

Levels to watch through the non-farm payrolls report
US Crude Inventory Declined More than Expected. Refinery Products Saw Stock-build
Biden says higher corporate tax won’t hurt economy; Manchin opposes 28% rate
Easiest forex trading strategy for beginners
The CHF is the strongest and the AUD is the weakest as NA traders enter for the day

Leave a Reply

Your email address will not be published. Required fields are marked *