Most Asian Stocks Bounce Back Despite Oil Gains, USD In Focus
- Asian stocks were mostly higher
- A stronger Dollar helped the region’s plentiful exporters
- Oil prices remained elevated by recent standards
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The greenback continued to gain broadly as the prognosis of further US interest rate rises took some Treasury yields up close to four-year highs. The Australian Dollar found a floor despite official domestic consumer prices’ inability to climb back to the Reserve Bank of Australia’s 2-3% target band, as they had been expected to do.
Technically speaking AUD/USD remains stuck in the downtrend channel which has dominated trading action for much of this year, with a marked acceleration towards that channel base now clearly evident.
The Nikkei 225 ended Tuesday’s session up 0.86% with most other bourses in the green. Asia’s exporters generally like the sight of a stronger Dollar and financial sectors sometimes like the idea of higher US interest rates as well.
Gold prices inched back up despite that stronger Dollar while crude oil prices continued their run of gains as investors fretted the possibility of reduced global supply and rising Mideast tensions. The market is looking to the next set of inventory data which are coming up later.
Still to come Tuesday are Germany’s Ifo business survey, UK public finance data, and the Case-Shiller house price indexes out of the US. These are likely to be mere warm-up acts however to the day’s main data event which will be official US consumer confidence data.
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--- Written by David Cottle, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.