Australian Dollar Futures Market News and Commentary
The dollar index (DXY00) on Monday fell -0.451 (-0.46%). Sep euro-fx futures (E6U0) closed up +0.0088 (+0.78%), and EUR/USD (^EURUSD) rose +0.0063 (+0.56%). Sep yen futures (J6U0) closed up +0.26 (+0.28), and USD/JPY (^USDJPY) fell -0.19 (-0.18%).
The dollar index on Monday dropped to a 1-1/2 week low as a surge in global equity markets reduced the liquidity-demand for dollars. The dollar was also under pressure Monday on strength in EUR/USD, which rose on the stronger-than-expected Eurozone May retail sales report. Also, the Chinese yuan on Monday climbed to a 3-1/2 month high against the dollar on a surge in Chinese stocks.
Global equity markets rallied sharply on Monday, which curbed liquidity demand for dollars. A +5.7% surge in China's Shanghai Composite to a 17-month high on Monday ignited a rally in world stock markets. Chinese stocks jumped on bullish enthusiasm after China's state-run Securities Times posted a front-page editorial Monday that said fostering a... Read more