News & Analysis

Risk on continues as equities, Bitcoin and commodities pump, USD dumps

5 October 2022 By Lachlan Meakin


Q4 has continued with a bang in Tuesdays session with US stocks posting their biggest two day gain since April 2020 and the best start to a quarter since 2009 (Best start of Q4 since 2002!)

The re-pricing of risk assets comes on the back of the view that Central banks will be a little less aggressive in their rate hiking cycle, with expectations of subsequent Fed rate cuts being priced in sooner rather than later.


This re-pricing coupled with the markets turning risk on has also see the USD see its biggest five day drop sinch March 2020 with the US Dollar Index dropping sharply, finding some support at the old resistance level of 110.

Another big up day in commodities as well with spot gold (XAUUSD) and Silver (XAGUSD) both continuing from Monday’s steep rally, Gold back up above 1720, looking to test the resistance levels set in August.

Silver topped $21 USD per ounce, setting 3 month highs.

Crude oil (USOUSD) also spiked further on OPEC+ production cut headlines and lessing growth concerns, US crude touching on $87 mid session.

In todays economic releases, it will be interesting to see if the RBNZ channels the RBA with a dovish tilt or continues on their fairly aggressive hiking path, another 50 bp hike is expected from them today.

US ADP employment figures will give a glance into the US labour market ahead of Fridays big one, the official Non-Farm payroll figure.

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