The new week has begun with another bout of havoc following the North Korea’s detonation of a hydrogen bomb. A test has been hailed as successful and clearly complicate a picture for the US administration. In the aftermath, gold prices soared early during the Asian session to reach $1337/oz while CHF and JPY were in demand. Even as moves have not been specially hefty, that scheme continues. As for now, the CHF gains 0.7% against the greenback while the JPY strengthens 0.5%. In turn, gold prices are up 0.8% or slightly more than $10.
The European equity markets have started off on the wrong foot as well even though they have already accustomed to such nuclear tests, at least to some extent. Losses have been erased moderately since then, however major indices at the old continent remain below the flat line. Let us remind as well that the US stock market is closed today due to Labor Day hence liquidity could dry out when European markets end the day.
The digital currencies are among top movers today with Bitcoin crashing more or less 10%. It might be a consequence of the Chinese story. Namely, the PBoC said that initial coin offerings are illegal and have asked all related fundraising activity to be halted immediately. The China’s central bank also reported that it has completed investigations into organizations and individuals who have conducted ICOs, and have ruled that the financing activities disturb financial order and shall be banned. Let us also come forth with the video analysis of Bitcoin (BTCUSD on xStation5) and Ethereum (ETHUSD).
The price action seen in the Australian dollar has been fairly interesting of late. The currency has thrived, however those gains are much less impressive weighing them against what we’ve seen in terms of export prices of key Australian commodities. It’s worth underlining that the GDP release and the RBA decision should be in the limelight for AUD traders this week.