freemexy: US Stock Closed Higher, While AUD/JPY Also Surged
US Stock Closed Higher, While AUD/JPY Also Surged
US stock again closed higher yesterday, and forex market also reflected the optimism: Aussie and New Zealand dollar gained over 1% at one point, and WTI closed 4.03% higher.
Dow Jones Index, S&P500 and NASDAQ gained 1.05%, 0.82% and 0.59% respectively upon closing yesterday.To get more news about WikiFX, you can visit wikifx news official website.
The upbeat mood of Wall Street will likely spill over to Asian session, creating rising momentum for Asian market and growth-oriented currencies such as AUD and NZD. Next the market is expected to shift much of their focus from the recent spotlight of RBA‘s policy decisions to the country’s GDP report in Q1.
As a major exporter of large commodities, Australia has been trying to dodge a recession unseen in nearly 3 decades, but given the current difficult geopolitical and economic situation, the country has little chance to survive the challenge unharmed.
AUD/JPY surged 2.3% yesterday, and the pair had already risen 20% after bottoming out at 62.41. Right now it continues to hike and is testing the several months resistance level of 75.925-76.320.
Despite the easing of virus lockdown measures around the country, US oil demand also dropped by about 4 per cent against the previous week, the EIA said. At 16m b/d it was a quarter lower than a year earlier. More than 40m workers claimed unemployment benefits in the US last week, according to the countrys labour department.
The extra oil imports pushed US crude inventories sharply higher. This dug into some storage capacity, but utilisation rates remain well under the high levels that sparked WTIs collapse below zero last month.
Imports from countries other than Saudi Arabian including Canada, Mexico and Opec producers Nigeria and Iraq, also rose last week — and more are coming, according to analysts.
Recommended Oil US oil production drop steeper than expected Saudi imports “are likely to remain high in the next few weeks but they will fall sharply from mid-June,” as the Opec cuts take effect.