Yesterday major US stock indexes closed mixed. Nasdaq composite gained 22 points and closed at 5897, making it its four session winning streak, S&P 500 up 2 points and closed at 2361 and Dow Jones industrial average shed 42 points and closed at 20659.
U.S dollar made a moderate advancement against the Yen in today’s Asian session; its latest upward rally could indicate a fresh upward rally. Recent upward movement is helped by the Japanese corporate investors who are buying dollar to settle commercial transaction at the end of month. The break above is USDJPY 111.31 show the upward potential for US dollar. Dollar upward movement is also supported by the hawkish comment from several Federal Reserve officials. Charles Evans, Chicago Fed president; who is one of the most consistent supporters of low interest rates said yesterday that he supports one or two more rate hikes this year. Jon Willian, Fed president of San Francisco commented that he still expects two more rate increase this year; he also said that he would not rule out more than three rate increases total this year.
Australian and New Zealand dollar up against U.S dollar in today’s trade, this movement was supported the higher commodity prices. A rise in global equity markets also supported currencies which are bound to commodities. It is expected that Australian and New Zealand dollar to trade near the recent levels for the rest of week, as there is no significant economic event and data due this week.
According to Survey by the housing industry association of big construction companies, home sales in Australia rose by 0.2% in February versus the expected modest drop of 2% decline in detached house commencements; this increase was led by Western Australia and Victoria State.
Some economist, however expecting the retreat of Australian dollar in the long term as iron ore prices weaken.