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Australia's S&P/ASX 200 closed down 1.7%, wiping out over $50 billion in market value, after the Federal Reserve cut rates by a quarter point but projected only two cuts in 2025. The US dollar hit a two-year high and the Aussie fell to about 62 US cents, its lowest since October 2023.
A stronger US dollar and higher expected US rates pressure the Aussie and other currencies that buy commodities, which can make US commodities relatively cheaper for foreign buyers. Equity and risk-off selling can also spill into commodity futures.
news.com.auFrank Chung, AFPDec 19, 2024Not enough comparable past events yet for a historical read.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
