• Dec 30, 2021
    • 2 min read

30th December 2021 - Markets calmed by milder symptoms of the Omicron strain.


Market Headlines

Further hopes for milder symptoms from the Omicron strain seeing calmer markets in offshore trade. Equities little changed whilst US yields were firmer although USD selling into the fix saw EUR/USD to highs of 1.1369 and AUD/USD briefly trading to 0.7272.

With no data of note out in early European trade it was predictably quiet with the USD a little better bid. GBP/USD fell to 1.3410, EUR/USD was down to 1.1274 with USD/JPY making 5 week highs at 115.04. AUD/USD was trading quietly around 0.7220 having earlier seen 0.7236 highs.

Into the NY session and US November Wholesale Inventories rose 1.2% MoM, down from 2.3% and below expectations of 1.5%. No reaction to the data with the USD generally weakening in early NY trade.

The second round of US data saw November Pending Home Sales decline by 2.2%, well short of expectations of a 0.8% increase. Again, no reaction to the data with Wall St mixed in early trade.

The USD weakened across the board into the London rate set with the local unit making highs of 0.7272 while NZD/USD moved up to 0.6841.

Majors drifting off their respective highs over the NY afternoon and settling into small ranges ahead of the Sydney open with the local unit steady near 0.7250. US yields higher – 10-year up as much as 7bps to 1.55%

Wall Street little changed into thin afternoon trade with the S&P500 up 0.15%.

Overnight Currency Range

Currency Pair Low High

AUD/USD 0.7213 0.7272

EUR/USD 1.1274 1.1369

GBP/USD 1.3410 1.3499

USD/JPY 114.67 115.04

NZD/USD 0.6789 0.6841

USD/CAD 1.2790 1.2835

USD/CNH 6.3660 6.3746

AUD/JPY 82.80 83.49

AUD/NZD 1.0607 1.0629

AUD Thoughts

Markets are calmer than many were braced for just a few weeks ago with currencies broadly managing to advance against the USD. Again, there is little on the data and event front to excite for the immediate sessions ahead with positioning and end-of-year flows expected to drive any moves for the remainder of this week.

AUD/USD to 0.7272 in offshore trade with another push higher over coming sessions seeing the risk of a short market squeezed out above 0.7300.

Bids expected from 0.7200/0.7220 area.

Event Risk Data Today

UK: December house prices

US: Weekly jobless claims and December Chicago PMI

Recent Posts

See All

Disclaimer

This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711.  The material contains general commentary only and does not constitute investment or any other advice.  Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors.  This information has been prepared without considering your objectives, financial situation or needs.  Please seek your own independent legal or financial advice before proceeding with any investment decision.  The information is believed to be accurate at the time of compilation and is provided in good faith.  Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract.  This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change.  Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.Navigate Global Payments Pty Ltd nor its related parties or officers accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site.