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AUD leads the gains, Bitcoin plunges below $13k

Summary:

  • Australian dollar leads the gains within the G10 group following better than expected retail sales
  • Bitcoin (BTCUSD on xStation5) tumbles on revelations that South Korea could shut down more crypto exchanges
  • China informs that the yesterday’s report on the US bond purchases could be based on wrong informations

It’s been quite a tumultuous session across financial markets. First and foremost it needs to remind that the US indices ended the day slightly lower on the back of a surge seen in the domestic bond yields. Their Asian counterparts followed this pattern more or less but losses have not been substantial thus far. As far as the FX is concerned the Australian dollar deserves the most attention as it’s the strongest currency in the G10 basket in the aftermath of the retail sales release. The data showed 1.2% mom for November while the market consensus had pointed just to 0.4% mom. A huge beat in a monthly basis brought the y/y basis up to 2.9% which definitely helped the domestic currency. According to the Australian Bureau of Statistics Black Friday and iPhoneX were among major drivers. Having said that, even as the November’s print turned out to be well above projections it did not change the overall subdued fundamentals for the consumer side as weak household income growth is a major constraint on spending.

link do file download linkAnyway, the AUD benefited from the release and it could poised to begin a larger increase against the single currency. Notice that the EURAUD is already trading below a key line nearby 1.5210 which could lead to a more severe pullback at least toward 1.4820. Source: xStation5

While the Australian dollar divided and conquered in the FX market the Bitcoin found itself at the opposite side when it comes to cryptocurrencies. The most famous cryptocurrency plunged overnight on the back of the news that South Korean regulators could shut down more digital currency exchanges. On top of that Reuters informed that the largest cryptocurrency exchange in South Korea was raided by the police and tax agencies. What’s more, Bithump being the second largest virtual currency operator in South Korea, was also raided by the tax authorities on Wednesday. Following those reports Bitcoin smashed a support area placed at $13,600 making a bottom slightly below $12,800. The digital currency has bounced back since then though as sellers faced another crucial support in the vicinity of $12,540.

link do file download linkBitcoin plunged overnight on the back of adverse news related to South Korean digital currency exchanges. The price fell below $13,600 and until it hovers below this support sellers could be better positioned to keep control. Source: xStation5

Finally let’s mention the yesterday’s Bloomberg report about China halting its US bond purchases. The Chinese government informed earlier today that the news on reducing or stopping purchases of US treasuries could be based on wrong informations. The government also added that purchases are market-driven. The US dollar got a bid to some extent following the Reuters story after being smashed on Wednesday.

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