AUD/JPY highest since 2015

Confidence is not “I will profit on this trade.” Confidence is “I will be fine if I don’t profit from this trade.  - Yvan Byeajee

 

 

HEADLINES

 

 

• Improved risk sentiment and high commodity prices help Aussie, hurt yen
• Oil prices resume climb after U.S. stockpiles drop in tight market
• Gold steady as Ukraine worries counter bets on Fed rate hikes
• Bond rout pushes cash back into stocks
• USD/CAD to move downward as high commodity prices propel the loonie – Scotiabank
• GBPUSD Near Term: Upside favored

 

 

FOREX

 

 

Improved risk sentiment and high commodity prices help Aussie, hurt yen

 

 

The Australian dollar marched higher and the Japanese yen continued its slide on Wednesday, as markets turned more positive on riskier assets and high commodity prices drove developments.

The Australian dollar hit its highest level since December 2015 versus the yen, having gained 8% in March so far.

Versus the dollar, the Australian dollar touched a four and-a-half month high of $0.7477 in early trade, having gained 0.95% overnight, while the yen slipped to as low as 121.4 per dollar after the dollar had climbed 1.1% on the Japanese currency overnight.

 

 

COMMODITIES

 

 

Oil prices resume climb after U.S. stockpiles drop in tight market

 

 

Oil prices turned higher on Wednesday, erasing losses from the previous session, after industry data showed U.S. crude stocks fell last week, underlining how tight global supplies are amid the hit to Russian output from economic sanctions on Moscow.

While prices dipped on Tuesday as it appeared the European Union was unlikely to agree to a ban on Russian oil, the market remains on edge over the prospect of further sanctions on Russia.

 

 

Gold steady as Ukraine worries counter bets on Fed rate hikes

 

 

Gold prices held steady on Wednesday as worries over the Ukraine crisis supported demand for the safe-haven metal, although calls from U.S. Federal Reserve officials for sharper interest rate hikes to combat inflation weighed on market sentiment.

 

 

STOCKS

 

 

Bond rout pushes cash back in to stocks

 

 

Asian equities hit three week highs on Wednesday as cash fleeing tumbling bond markets flowed back toward big tech and other beaten-up sectors, while the Ukraine conflict's potential to further hit supplies kept oil and commodity prices high.

Japan's Nikkei jumped 2.5% to touch a two-month top and the moves follow a gain of 1.1% for the S&P 500 and nearly 2% for the Nasdaq in overnight trade.

 

 

ANALYSIS

 

 

USD/CAD to move downward as high commodity prices propel the loonie – Scotiabank

 

 

“With crude still trading well north of $100 and commodity prices generally elevated while broader market volatility continues to recede, we remain constructive on the CAD outlook – although rising US yields may become a headwind for the loonie if domestic yields fail to keep up.”

“We look for more range trading in the short run but feel technical pointers continue to suggest more downside risk for the USD.”

 

 

CHART

 

 

GBPUSD Near Term: Upside favored

 

 

Technical View: Long position above 1.316. Target 1.332. Conversely, break below 1.316, to open 1.311.

Comments: The pair remains supported. Further advance favored.

 

Source: Trading Central
 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

Footnotes

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/usd-cad-to-move-downward-as-high-commodity-prices-propel-the-loonie-scotiabank-202203221417
https://www.reuters.com/business/global-markets-wrapup-1-2022-03-23/
https://www.reuters.com/business/energy/oil-prices-resume-climb-after-us-stockpiles-drop-tight-market-2022-03-23/