Asian Markets Closed In Negative While Falling Oil Prices Burdened CAD
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Equities

Asian stock markets traded lower driven by concerns of a surge in inflation guiding some central banks to change their monetary policy, which could disrupt economic recovery amid rising COVID-19 cases in some of the world’s largest economies.

The ASX 200 (+0.1%) benefited after Victorian Prime Minister Daniel Andrews ’announcement that the easing of sanctions in the state would be implemented at midnight tonight.

The Nikkei 225 (-0.3%) was dragged lower as the recovery in the Japanese Yen weighed on exporters.

Hang Seng (-1.5%) while Shanghai Composite (-0.2%) declined after another liquidity drain by PBoC with the decline in Hong Kong exacerbated by technology sales.

Commodities

WTI crude futures fell below $77 a barrel following reports that the United States asked other major oil consumers such as China, India, Japan and South Korea to consider releasing adjusted oil reserves to lower prices.

Gold prices strengthened above the $1,860 level as U.S. Treasury yields retreated from recent highs, and amid a shift toward safe-haven assets driven by economic and policy uncertainty.

Forex

The US dollar eased slightly to 95.8 after US housing data failed to boost the US dollar.

NZD/USD bounced back above the 0.7020 level after the latest inflation survey strengthened expectations of further interest rate hikes from the RBNZ.

The CAD is under pressure due to the recent drop in crude oil prices as investors begin to worry about the actions of the Biden administration.