Dollar Demise ?

he S&P/ASX 200 index declined 11 points, or 0.2 per cent, to 6043 while the All Ordinaries lost 10 points, or 0.2 per cent, to 6158. The Australian dollar was at US80.72¢ after US officials’ comments sent the greenback tumbling overnight.

US Treasury Secretary Steven Mnuchin endorsed the US dollar’s decline as a benefit to the American economy and Commerce Secretary Wilbur Ross said the US would fight harder to protect its exporters.

“His comments have turned into a bit of fiasco and will end up going down in market folklore for marking the first time since the early 90’s a US Treasury Secretary endorsed a weaker US dollar,” said Stephen Innes, APAC head of trading at OANDA.

Commodity prices gained as the dollar weakened, providing a tailwind for the Australian mining sector on Thursday.

BHP climbed 0.9 per cent, Newcrest advanced 2.5 per cent and Rio Tinto rose 1.1 per cent.

Energy companies were also broadly advancing, with Woodside up 1 per cent and Whitehaven Coal higher by 4.1 per cent.

On the downside, Westpac declined 0.6 per cent and ANZ lost 0.8 per cent in the banking sector.

Industrials were lower as well, with Transurban down 1.6 per cent and Sydney Airport lost 1.4 per cent.

Sydney Morning Herald

 

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

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and 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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