The Australian dollar (AUD) moved cautiously as markets weighed the effects of the US government shutdown, which delayed the release of important macro data and obscured visibility ahead of the Fed's decision. The lack of data has led market participants to rely again on signals from Treasury yields and the direction of the DXY; if US yields soften and the dollar loses traction, the AUD has room to strengthen, but any risk-off episodes tend to pressure high-beta currencies like the Aussie. Domestically, the focus is on the RBA early next week to read the latest policy tone: whether the...
Oil was on track for the biggest weekly decline since late June, ahead of an OPEC+ meeting that's expected to result in the return of more idled barrels, exacerbating concerns around oversupply. West Texas Intermediate futures traded below $61 a barrel, down almost 8% for the week. Brent closed near $64 on Thursday. The alliance is scheduled to meet on Sunday to make a decision on output for November, and could discuss fast-tracking supply hikes as the group seeks to reclaim market share. There are already early signs that global oversupply may be emerging in the...
Gold edges higher in early Asian trade, aided by risks that the U.S. government shutdown may weaken the economy, potentially prompting more Fed rate cuts that would bolster the appeal of the non-interest-bearing precious metal. Treasury Bessent said in an interview with CNBC on Thursday that the shutdown has the potential to chip away at U.S. economic growth. Gold prices are supported by expectations of easier monetary policy, central bank demand and a weak U.S. dollar, says Fawad Razaqzada, market analyst at City Index and FOREX.com, in an email. Spot gold is 0.1% higher at...
The Australian dollar (AUD) weakened slightly against the US dollar (USD) following the release of a number of economic data, but then stabilized on Friday. Recent data showed that business activity in Australia is slowing. The Composite Purchasing Managers' Index (PMI) fell to 52.4 in September, from 55.5 in August. This indicates that economic growth is still ongoing, but at a slower pace, marking the lowest level since June. The services sector also slowed, although it continued to grow for 20 consecutive months. Furthermore, Australia recorded a decline in its trade surplus. In August,...
Silver slipped below $47 per ounce on Friday but remained on track for a seventh consecutive weekly gain, supported by expectations of further US rate cuts and uncertainty from the government shutdown. Recent US data reinforced bets on more easing, with markets nearly fully pricing in a 25 basis point cut this month and another by December. Politically, the shutdown has so far shown limited direct impact, though it heightened concerns over fiscal policy, inflation risks and labor market weakness. It also triggered a data blackout, forcing the Labor Department to postpone Friday's September...