http://www.forex.com/uk/post?SDN=0f27c677-380b-4355-a507-25ff55c7995a&Pa=20db1fa6-e674-420c-9a87-2ee29261d638
The dollar lost ground as U.S. treasury yields tumbled sending the greenback to record lows against the Australian dollar and near record lows against the Swiss franc. AUD/USD surged to new all time free-floating highs of around 1.0180 as yields on Australian 10-years rose and those of the U.S. equivalents dropped. The pair has traded at these levels in 1982 when the Australian dollar was pegged, however these are the highest levels seen since controls on the currency ended in 1983.
The U.S. auctioned $29 billion in 7-year notes which drew a high yield of 2.83% with a bid/cover ratio of 2.86 (up from the previous 2.63). Additionally, indirect bidders which include foreign central banks bought 64.2% of the notes – the highest level since June 2009. This strong demand sent yields lower resulting in a lower dollar. EUR/USD rallied above 1.3200, GBP/USD rose above 1.5500, and USD/CHF fell to near record levels as the dollar plummeted.
U.S. equities gained for the second consecutive session with the Dow Jones Industrial Average advancing by around +0.09% while the S&P 500 closed higher by about +0.10%. Commodities were mixed with oil slipping by nearly -0.49% and the metals shined. Gold rose around +0.36% and silver once again outperformed rallying by nearly +0.87%.
On the data front for the upcoming Asia/Pacific session is Japan’s weekly securities investments data and the December HSBC manufacturing PMI which due out of China.
The U.S. auctioned $29 billion in 7-year notes which drew a high yield of 2.83% with a bid/cover ratio of 2.86 (up from the previous 2.63). Additionally, indirect bidders which include foreign central banks bought 64.2% of the notes – the highest level since June 2009. This strong demand sent yields lower resulting in a lower dollar. EUR/USD rallied above 1.3200, GBP/USD rose above 1.5500, and USD/CHF fell to near record levels as the dollar plummeted.
U.S. equities gained for the second consecutive session with the Dow Jones Industrial Average advancing by around +0.09% while the S&P 500 closed higher by about +0.10%. Commodities were mixed with oil slipping by nearly -0.49% and the metals shined. Gold rose around +0.36% and silver once again outperformed rallying by nearly +0.87%.
On the data front for the upcoming Asia/Pacific session is Japan’s weekly securities investments data and the December HSBC manufacturing PMI which due out of China.
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