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The Federal Reserve's recent hawkish stance, signaling a slower pace of interest rate cuts, has led to a surge in the US dollar, causing significant pressure on major currency pairs like AUD/USD, EUR/USD, GBP/USD, and USD/JPY. Traders are adjusting positions as the dollar strengthens, with AUD/USD nearing 2 ¼ year lows and USD/JPY sensitive to the divergence in monetary policy between the Fed and the Bank of Japan. Market expectations now reflect a reduced outlook for rate cuts in 2025, influenced by strong US inflation and economic indicators.
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The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against Binance Australia Derivatives for misclassifying over 500 retail clients as wholesale investors, depriving them of essential consumer protections. This misclassification exposed clients to high-risk financial products without adequate safeguards, prompting ASIC to seek penalties and corrective measures. The regulator criticized Binance's compliance systems as "woefully inadequate," highlighting the need for proper classification to ensure retail clients receive necessary protections.
AUD/USD, EUR/USD, and GBP/USD have sharply declined following hawkish comments from the Fed. AUD/USD has reached a 13-month low of $0.62, with support at $0.6171. EUR/USD has dropped to a November low, while GBP/USD slid to a three-week low of $1.2562, facing resistance at $1.2608 to $1.2617.
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The Australian dollar is under pressure, hitting a year low due to the strong US dollar and weak housing data from China, with potential further declines if key support levels are breached. Meanwhile, the Nasdaq shows bullish momentum, with traders eyeing a resistance level around 22,350, while the ASX 200 benefits from a Santa Claus rally. Bitcoin continues to rise, surpassing $108,000, although traders should be cautious of potential pullbacks, while gold faces pressure from anticipated interest rate cuts and a stronger dollar, with critical support at $2600.
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The Federal Reserve's hawkish stance following a 25 basis point rate cut has unsettled key risk assets, including the AUD/USD and Bitcoin, leading to a surge in the US dollar and yields. The AUD/USD plummeted to a two-year low of 0.6199, while Bitcoin fell to $99,997, reflecting weakened risk sentiment. Analysts suggest that both assets need to reclaim critical support levels to counter ongoing downside risks.
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AUD/USD has fallen to a new 13-month low, currently trading at $0.63, with potential support at the October low of $0.6271. Meanwhile, EUR/USD remains range-bound, and GBP/USD is struggling to gain momentum, hovering near recent lows while facing resistance around $1.2715 to $1.275. Upcoming monetary policy decisions from the Fed and BoE are anticipated to influence market movements.
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The Australian Securities and Investments Commission (ASIC) has initiated legal action against Binance Australia Derivatives for misclassifying 83% of its Australian clients as wholesale investors, which deprived them of essential consumer protections. The regulator claims that over 500 clients were exposed to high-risk products without adequate safeguards, leading to significant financial losses. This lawsuit follows ASIC's cancellation of Binance's financial services license in April 2023 due to compliance failures, amid increasing regulatory scrutiny of the digital asset sector in Australia.
The ASX 200 is trading 4 points lower at 8310 as caution prevails ahead of the Federal Open Market Committee meeting. Speculation about the Santa Claus rally is growing, with mixed performances across sectors; property and healthcare stocks gained, while big banks generally declined. The energy sector hit a three-year low before seeing some buying interest, and technical analysis suggests a potential rebound if the index remains above 8236.7.
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Viva Leisure is expanding into international markets, focusing on its Plus Fitness brand and acquiring a 25% stake in World Gym, positioning itself as Australia's second-largest gym operator. However, the company faces challenges in a saturated industry, with stagnant share prices and financial concerns amid economic pressures affecting consumer spending on gym memberships. Despite an attractive valuation and projected growth for 2025 and 2026, investors are advised to adopt a cautious approach while monitoring earnings growth.
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EUR/JPY and USD/JPY continue to rise, with EUR/JPY reaching ¥162.47 and targeting resistance at ¥163.60-¥163.89. Meanwhile, AUD/USD is trading near a 13-month low at $0.6337, with minor resistance at $0.6435. Upcoming Fed and BoJ rate meetings may influence these trends.
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