The Australian dollar (AUD) was under pressure again on Thursday (5/22) as the US dollar (USD) found its footing, with risk appetite fading and broader markets leaning towards the defensive. A strong surge in the US Dollar Index (DXY) weighed on the AUD, pushing AUD/USD down to 0.6415, a key support level that has acted as a floor in recent sessions. At the time of writing, the pair was trading around 0.6418, hovering just above its intraday low as sellers tested the resolve of near-term support. US dollar buoyed by strong data, but longer-term risks loom The Aussie's decline reflects...
Gold steadied after its first decline this week, as some traders turned to longer-term U.S. Treasury bonds and the dollar instead of the precious metal. Bullion traded near $3,300 an ounce, reversing gains made on Thursday, and is still up nearly 3% this week after buying the safe-haven asset following a Moody's downgrade of the U.S. rating. The world's largest economy faces a precarious fiscal situation, with a growing debt pile and rising interest payments that could lead to higher borrowing costs and make it harder to reduce the deficit. The precious metal has surged by about a quarter...
WTI crude oil futures fell below $61 per barrel on Friday, heading for its first weekly decline in three, pressured by the potential for OPEC+ to raise crude production. The group is reportedly considering a third consecutive monthly increase in output quotas, possibly adding 411,000 bpd in July, though no agreement has been finalized. This adds to growing oversupply concerns, following an unexpected rise in US crude stockpiles earlier in the week. Data from The Tank Tiger also showed that US crude storage demand has recently surged to levels last seen during the COVID-19 pandemic, as...
The dollar index fell to around 99.6 on Friday and was set to lose more than 1% for the week, weighed down by concerns over the US fiscal outlook. President Trump's new budget bill, which includes tax cuts and increased defense spending, has raised concerns that it could further inflate the US national debt. The Congressional Budget Office estimates the bill will add nearly $4 trillion to the national debt, fueling fears of long-term fiscal instability. These concerns were compounded by Moody's recent downgrade of the US credit rating from Aaa to Aa1, citing ballooning deficits and the...
The Japanese yen strengthened to around 143.6 per dollar on Friday and was set to advance more than 1% for the week, underpinned by hotter-than-anticipated inflation data. Japan's core inflation rate accelerated more than expected to 3.5%, the highest in over two years. This reinforces expectations that the Bank of Japan will continue tightening monetary policy in response to sustained inflationary pressures. Meanwhile, the headline inflation rate remained steady at 3.6%. The yen also benefited from a general weakness in the dollar amid concerns about the US fiscal outlook. Elsewhere,...