AUD/USD Affected by Weakening Dollar
In early Asian trading, the AUD/USD fell to a daily low of 0.7259 but then rebounded. At the time of writing this article, the trading price on the tied day was 0.7284, an increase of 0.36%. Market sentiment is sluggish, as evidenced by the decline in the U.S. stock index.
The Dow Jones Index, S&P 500 Index, and Nasdaq Composite Index recorded drops of 1.06%, 1.43%, and 2.37%, respectively. At the same time, the United States dollar index that tracks the performance of the dollar against six other currencies fell 0.30% to 93.79.
The main factors driving sentiment are the Fed’s bond contraction prospects, inflationary pressures, and the Evergrande crisis. These issues may very well extend to the Chinese economy.
WTI Reaches Milestone
Earlier in European time, oil prices fluctuated between $75.31 and $76.00. However, the statement of the Organization of Petroleum Exporting Countries and its allies increased crude oil by 400,000 before November, stimulating WTI to rebound to a seven-year high because the market expected a greater increase.
WTI is trading at $78.01, which is a 3.20% increase at the time of writing. The market sentiment was pessimistic. Hit by rising energy prices, inflationary pressures, and rising U.S. bond yields, major US stock markets fell 1.16% to 2.42%. At the same time, the dollar index, which usually follows the trend of U.S. 10-year Treasury bond yields, fell 0.30% to close at 93.78, against a basket of six other competitors.
S&P Hits New Low
After Friday’s rebound, the S&P’s 500 Index opened slightly lower on Monday but has been under strong bearish pressure in the past few hours. As of the time of writing, SPX is trading at its lowest level since the 20th of July, at 4,386, with a daily decline of 1.65%.
Similarly, other major Wall Street indexes have also suffered heavy losses. The Dow Jones Industrial Average fell 1.3% to 33,888, and the Nasdaq Composite Index fell 2.6% to 14,189. The sharp drop in major technology stocks seems to put pressure on IXIC.
Currently, Twitter Inc’s stock price is down 6.5% on the same day, and Facebook’s stock price is down 5.6%. There are reports that the global outage of Facebook’s largest apps, WhatsApp and Instagram, also played an important role in Monday’s dismal performance of the stock market.
Increase in Factory Orders
According to data released by the U.S. Census Bureau on Monday, new orders for the U.S. manufacturing industry increased by $6.2 billion, or 1.2%, to $515.7 billion in August. This data came after the 0.4% increase in July, which was better than the 0.9% increase expected by the market.
Shipments have also increased by 15 months in the past 16 months, an increase of $300 million, or 0.1%, to $508.3 billion, according to the publication. The outstanding orders for seven consecutive months increased by $11.9 billion, or 1.0%, to $1,239.4 billion.
Be sure to check back as we provide further updates next week to see how these changes progressed.