Summary:

  • The US dollar has gained bullish momentum climbing to two-week high
  • Trade data from Austrailia comes in below expectations, Antipodean currencies stay under pressure
  • Bitcoin (BTCUSD on xStation5) reaches new highs surging well above $14,000 mark 

Overnight we saw some interesting moves on FX market as well as on stocks and cryptocurrencies. The US dollar has clearly gained bullish momentum as the USD index climbed to a two-week high on the back of improved sentiment on stocks – the Japan’s Nikkei (JAP225) rose as much as 1.54%. Moreover, Antipodean currencies, AUD and NZD, have come under pressure, as Australian trade data disappointed and IMF issued a negative report on China. The last but not least, Bitcoin once again established new records breaking above $14,000. 

Let’s begin with data from Australia. The October trade surplus slid to 105mm AUD, whilst consensus had called for +1.4bn AUD. It’s huge miss and given the surplus of 1.6bn AUD for September, we note how the deterioration in the data significant was. Worse results steamed from lower exports (-3% m/m) and rising imports (+2% m/m). That’s another miss after the GDP print released yesterday. We got also a report from the IMF. The International Monetary Fund is sceptical about China’s plans for jobs and growth whilst trying to fix the banking and debt situation at the same time. In turn, AUD and NZD were the weakest currencies in G10 overnight losing against broadly stronger USD respectively 0.28% and 0.45%. At the same time, the US dollar managed to come back to two-week high as sentiment on stock markets improved and Treasuries stabilised. The tech sell-off paused pushing Japan’s Nikkei (JAP225) higher – it was the best performing benchmark in Asia rising as much as 1.54%. 

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 Declining exports narrow down Australian trade surplus. Source: Macrobond, XTB Research

Finally, it seems that the rally on Bitcoin is not going to slow down anytime soon. Once again the most popular cryptocurrency broke higher establishing new all-time highs. Overnight its price topped $14,000 as the market awaits the introduction of Bitcoin derivatives on two US exchanges – CBOE and CME – this month.

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The USD index (USDIDX on xStation5) reaches its two-week highs. Bulls could aim at 50.0% Fibo retracement. xStation5