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AUD/USD post moderate gains on solid US data, weak Aussie PMI

AUD/USD post moderate gains on solid US data, weak Aussie PMI

The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.

AUD/USD News

USD/JPY: Japanese Yen advances to nearly three-week high against USD ahead of US NFP

USD/JPY: Japanese Yen advances to nearly three-week high against USD ahead of US NFP

The Japanese Yen continues to draw support from speculated government intervention. The post-FOMC USD selling turns out to be another factor weighing on the USD/JPY pair. Investors now look forward to the crucial US NFP report for a fresh directional impetus.

USD/JPY News

Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar

Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar

Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.

Gold News

High hopes rouse for TON coin with Pantera as its latest investor

High hopes rouse for TON coin with Pantera as its latest investor

Ton blockchain could see more growth in the coming months after investment firm Pantera Capital announced a recent investment in the Layer-one blockchain, as disclosed in a blog post on Thursday.

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NFP: The ultimate litmus test for doves vs. hawks

NFP: The ultimate litmus test for doves vs. hawks

US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year. 

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S&P 500

The Standard & Poor's 500, abbreviated as the S&P 500, or just "the S&P” is a market value-weighted index of 500 large companies having common stock listed on the New York Stock Exchange (NYSE). It is seen as a leading indicator of U.S. equities and generally perceived as the most representative.

The S&P 500 stock market index, maintained by S&P Dow Jones Indices, comprises exactly 505 common stocks – including two share classes of stock from 5 of its component companies – issued by 500 large-cap companies and traded on American stock exchanges (including the 30 companies that compose the Dow Jones Industrial Average, DJIA) and covers about 80% of the American equity market by capitalization. The index is weighted by free-float market capitalization, so more valuable companies account for relatively more of the index. The index constituents and the constituent weights are updated regularly using rules published by S&P Dow Jones Indices.

The companies of the index are selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor's following selection criteria including market size, liquidity and industry grouping.

Over time, the S&P 500 can be used as a benchmark for the economy.


HISTORIC HIGHS AND LOWS FOR S&P 500

  • All-time records: Max: 3397 on 20/02/2020 - Min: 4.4 on 05/1932
  • Last 5 years: Max: 3397 on 20/02/2020 - Min: 1807 on 11/02/2016

* Data as of February 2020


ASSETS THAT INFLUENCE THE S&P 500 THE MOST

  • Currencies: USD.
  • Commodities: Oil and Gold.
  • Bonds: T-Bond (Treasury bond is a marketable, fixed-interest U.S. government debt security).

ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE THE S&P 500

Since the S&P 500 is a benchmark of American stocks, what will impact its value is related to all those decisions and figures that affect the results of big companies in the USA. That is, among others:

  • Economic indicators of inflation (CPI, PPI,...), consumer confidence (as Michigan Consumer Confidence Index), growth (GDP), employment (Non Farm Payrolls) and salaries (Average Hourly Wages)
  • interest rates decided by the Federal Reserve System, which is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises. Jerome Powell is the 16th Chair of the Federal Reserve, serving in that office since February 2018. He was nominated to the Fed Chair position by former President Donald Trump and confirmed by the United States Senate.
  • Fiscal policy, trade deals, business laws decided by the US administration (Joe Biden), but also by the US Treasury Department (Janet Yellen) and the US Department of Commerce (Wynn Coggins). The US Department of the Treasury's mission is to maintain a strong economy and create economic and job opportunities by promoting the conditions that enable economic growth and stability at home and abroad, strengthen national security by combating threats and protecting the integrity of the financial system, and manage the U.S. Government’s finances and resources effectively. The US Department of Commerce is an executive department of the federal government concerned with promoting economic growth. Among its tasks are gathering economic and demographic data for business and government decision-making, and helping to set industrial standards
  • Energy prices such as electricity, oil, etc...because they have impact on production costs for those companies that are part of the S&P500.