International News: Trump Sparks Dollar Rally as Offshore RMB Drops Over 1,000 Points

On Wednesday, November 6, Donald Trump announced his victory, igniting the so-called “Trump trade.” This triggered a surge across the S&P 500, Nasdaq, and Dow Jones, all hitting record highs 📈. The Dow soared by more than 1,550 points, Tesla’s stock jumped nearly 15%, and Trump Media & Technology Group skyrocketed over 34.8% before giving up most of its gains. Even MicroStrategy, a major Bitcoin holder, closed 13.17% higher.

Trump’s win has investors optimistic about deregulation, strengthening Wall Street giants. The KBW Bank Index surged over 10%, highlighting this sentiment.

• Forex Highlights:
  • The US Dollar Index (DXY) climbed 1.66% to 105.137, breaking above its 200-day moving average (103.849) and nearing the June 26 high of 106.130.
  • The Japanese yen weakened by 1.95%, finishing at 154.58 yen per dollar. Analysts at Wells Fargo predict further declines, with the yen potentially touching 161.95 if US bond yields continue to rise 📉.
  • Offshore RMB fell 1,019 points, closing at 7.2036 per dollar, just shy of the August 2 low of 7.2521.

Australian News: RBA Holds Rates Steady Amid High Inflation Concerns 🇦🇺

On Tuesday, November 5, the Reserve Bank of Australia (RBA) announced its decision to keep the cash rate target unchanged at 4.35% and the exchange settlement balance rate at 4.25%.

While headline inflation has eased, underlying inflation remains too high. The RBA emphasized maintaining restrictive monetary conditions until inflation confidently moves within its target range of 2% to 3%.

Technical trends still point to bearish momentum, with support levels at 0.6537 and 0.6477, while resistance lies at 0.6652.

Key Takeaways from the RBA Statement:

The central bank remains data-driven 📊 and has left the door open for future rate adjustments.

Underlying inflation is expected to decline gradually as economic supply and demand align.

Overall inflation is projected to return to target by mid-2025, partly due to temporary relief in living costs.

Market Impact:

The Australian dollar (AUD) showed limited reaction, trading near 0.6588 against the USD.