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AUD leads the gains once again as iron ore surges

Summary:

  • AUD leads the gains in G10 as an iron ore’s surge props it up
  • European stocks remain little changed
  • Many crucial macroeconomic data from the US imminent

There have been no relevant macroeconomic releases thus far, however things are going to change later in the day as a bunch of readings will be revealed from the US economy with retail sales and consumer price inflation being in the limelight. Let’s whip through noteworthy points for financial markets which have occurred so far.

First and foremost, there was fairly a calm session across Asian equity markets, all of them ended the day above the break-even though. On the other hand, we could spot a perceptible gain on the AUD (+0.36%) which is being shored up by increasing iron ore prices (the most important export commodity for the Australian economy). The commodity is going up another session in a row this time all but 3%.

Moreover, needless to say that Friday could be a very special day for the USDJPY currency pair. The Chair Yellen left many cards close to her chest during her testimony on Wednesday and Thursday but she made a clear suggestion that inflation could be the key to next decisions taken by the US Fed. Therefore today’s CPI print could have massive repercussions for the US dollar and especially the USDJPY.

Spirits across the European equity markets have been quite indecisive so far as major indices are still hovering around the unchanged. With regard to a possible mover which could exert an impact on stocks there is the FED’s Kaplan speech scheduled at 2:30 pm BST. He is known as a centrist so any shifts to the dovish or hawkish tone could affect the greenback and stocks as well.

Taking a look into the nearest future there are numerous crucial macroeconomic releases from the US economy. Given that the US dollar hasn’t caught up on its previous losses so far despite a slightly better than expected data, there could be still quite huge room to take the dollar higher, for example in the aftermath of higher inflation or retail sales.

Besides, we would like to present you the two noteworthy banks’ recommendations on AUDUSD and USDJPY.

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