APAC Markets Soar After OPEC Production Cut

The overnight rally in oil prices amid reports that oil producers finally agreed to cut production levels sent Asia markets higher on Thursday.

Australia’s ASX 200 was up 0.87 percent in morning trade, with the energy sector rallying 6 percent, while the materials sector gained 2.25 percent.

The Australian dollar, which is influenced by moves in oil prices, climbed from levels near $0.7650 in the overnight session to as high as $0.7710 on Thursday morning local time. As of 9:49 a.m. HK/SIN, the Aussie traded at $0.7700.

Stephen Innes, a senior trader at OANDA, said on Thursday that while the bounce in commodities helped to push the Aussie dollar higher, sentiment is also “underpinned by a growing consensus that the Reserve Bank of Australia will remain on hold for the foreseeable future.”

This, Innes said, underscored the market’s view of the Aussie as a “safe haven high yielder.”

 

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This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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