US dollar considerably stronger against risk currencies

The reaction to the Syrian chemical weapons crisis, coupled with a lack of economic data and the continued struggle of emerging market bourses has made for an interesting week so far on currency markets.  

US equity markets were crunched overnight even as Consumer confidence data hit five year highs.   The US dollar was considerably stronger against risk currencies with the Australian dollar slumping to a low of 89.33 US cents.  We saw the Pound also struggle and it shed over a cent at its worst but the Euro was able to buck the trend and sit at 1.3390 USD for most of the US session.

 

The key performers overnight were the Japanese Yen and Gold, with the Yen making solid gains against the majority of its traded peers.  The Australian dollar has shed over 200 pips versus the Yen this week so far just bouncing up from lows now at 87.24 Yen.  Gold traded as high 1423.68 and only sits 6 dollars below this mark through early trade this morning still well supported after a strong 24 hours of trade.

 

The focus will yet again remain on Syria especially after some of the comments coming from the foreign minister highlighting their ability to “surprise” if they’re attacked.  Regional equities are still a while a way from opening so we do have a void before the focus can turn back to emerging markets.   The Australian dollar is continuing on from the US session well supported at 89.81 US cents but again we have a local session with no economic releases due.