China has emerged as a critical trading partner for Australia, accounting for one-third of its exports. Such dependency on China leaves the Australian economy vulnerable to fluctuations in Chinese demand. As the trade-to-GDP ratio of Australia stands above 50%, any weakening of Chinese demand would have a significant impact on the Australian economy, including its
The predicted rise of the benchmark 10-year Treasury note yield to its highest level since May 2001 has brought forth mixed opinions from experts. Wall Street forecaster Jim Bianco is at the forefront of this prediction, forecasting that the yield will reach 5.5% this year. This level has not been seen since the time of
The corporate bond market in the United States is experiencing a booming start in 2024, with companies raising nearly $16 billion in high-grade rated bonds in just one day. This follows a $29 billion issuance binge on the previous day, as companies seize the opportunity to take advantage of strong investor demand. The surge in
The EUR/USD faced another setback, slipping into the 1.0900 handle on Wednesday due to cautious remarks from the Federal Reserve (Fed) regarding rate cuts. This development has provided a significant boost to the US Dollar (USD), which has remained strong amidst a broader market recovery. With an absence of European Union (EU) data on Wednesday,
At the December 2023 policy meeting, U.S. Federal Reserve officials expressed growing confidence in their ability to control inflation. According to minutes from the meeting, officials believed that “upside risks” to inflation had diminished and expressed concern about the potential damage that overly restrictive monetary policy could inflict on the economy. As a result, there
The Federal Reserve officials have concluded that interest rate cuts are on the horizon for 2024, as stated in the minutes released from their December meeting. However, little clarity was provided regarding the timing of these potential cuts. During the meeting, the rate-setting Federal Open Market Committee decided to maintain its benchmark rate within a
The US Dollar Index (DXY) has gained ground as traders react to the latest ISM Manufacturing PMI report. The report showed an improvement in the PMI, rising from 46.7 in November to 47.4 in December. This positive data has provided support to the US dollar, pushing it higher against other major currencies. If the US
The Mexican Peso (MXN) started the year on a weaker note against the US Dollar (USD), experiencing a dip to a three-month low of 16.86 on December 28. However, the MXN has been influenced by a rise in US Treasury Bond yields and a generally bullish sentiment towards the USD. These factors have helped keep
Richmond Federal Reserve President Thomas Barkin recently addressed the state of the economy, expressing confidence in its trajectory towards a soft landing. However, he also emphasized the need for caution among policymakers, recognizing the challenges that lie ahead. Despite progress in managing inflation and sustaining economic growth, Barkin indicated that interest rate hikes are still
The price of silver (XAG/USD) has taken a sharp downturn, plunging to near $23.15 as investors seek safer assets in the early New York session. Market participants are rapidly abandoning the white metal, leading to a decline in its appeal. This sudden shift is primarily attributed to investors reevaluating their bets on early rate cuts
The Nasdaq 100 has long been outperforming the Dow Jones Industrial Average (DJIA) during the major uptrend phase. However, this trend seems to be changing as there has been a recent bullish rotation into the laggard, DJIA. This rotation is considered a positive breadth development for the US stock market. In this analysis, we will
The US dollar saw a significant rally during Tuesday’s trading session, breaking above the 142 yen level. This movement has sparked hope among traders, suggesting a potential resurgence for the struggling currency. However, there are still hurdles to overcome before the dollar can fully recover. To solidify its upward trajectory, the USD needs to break