Asia Pacific Market Open – Crude Oil, US Dollar, Brexit, GBP, Australian Dollar, Canadian Dollar
- Wall Street little changed despite reduced US China trade war fears, culprit seemed to be crude oil[1]
- Oil declined by the most since 2016 on an unfavorable OPEC demand outlook. Yet, USD/CAD[2] fell
- AUD/USD[3] looks to Australian wage and key Chinese economic growth data as Asia stocks may rise
Check out our 4Q forecast for crude oil prices in the DailyFX Trading Guides page[4]
Market optimism from Tuesday’s Asia Pacific trading session failed to transpire into more meaningful progress on Wall Street. In what began as a cooldown in US China trade war fears[5], it ended in pessimism as Crude Oil plunged by the most since February 2016. The commodity entered its 12th consecutive day of losses as OPEC warned that it sees demand for its stockpiles easing for the road ahead[6].
As crude oil continued to build on its worst consecutive losing streak since at least 1984, the Canadian Dollar followed the commodity lower. At times, the Loonie often moves in positive correlation with oil given that it is a key source of revenue for Canada. But, CAD[7] still managed to gain ground against the greenback by the end of the day.
This is mainly thanks to losses in the US Dollar[8] during the APAC session and late Wall Street trade. In the former, demand for safe havens waned and the anti-risk Japanese yen suffered. During the latter, reports that UK Prime Minister Theresa May
