Recent forex market showing 'extremely nervous' moves
Japanese Finance Minister Taro Aso said on Tuesday that the foreign exchange market has recently shown "extremely nervous moves" and that he was closely watching currency movements.
Aso, speaking to reporters after a cabinet meeting, made the remark when asked about the yen's rise since last week
Australia cuts rates to historic lows to head off deflation
Australia's central bank cut its cash rate a quarter point to an all-time low of 1.5 percent on Tuesday, the second easing this year as it seeks to defend the economy from creeping deflation and restrain a too-strong currency.
The local dollar AUD=D4 did initially retreat on the Reserve Bank of Australia's (RBA) widely expected move. But it quickly rebounded as investors anticipated easings by other central banks, underlining the challenge of keeping the currency down in a world where negative rates are now commonplace.
U.S. crude oil edges back over $40, but oversupply still weighs
Oil prices edged up on Tuesday after U.S. crude broke below $40 per barrel the previous session, but traders said fuel markets continued to be dogged by excess production.
U.S. West Texas Intermediate (WTI) crude was at $40.15 a barrel at 0433 GMT (12:33 a.m. ET) , up 9 cents from its last close after dipping below $40 for the first time since April the previous session.
International Brent crude oil futures were trading at $42.34 per barrel, up 20 cents from their last close.
Oil closed in a bear market Monday, but don’t abandon hope. Analysts are looking beyond the current slide to next year for a rebound.
Crude has plunged by more than a fifth in less than two months as refineries created a glut of gasoline while failing to eliminate excess supply of crude. That wrecked refining margins and hurt the earnings of Exxon Mobil Corp., BP Plc and Royal Dutch Shell Plc. Yet, global oil prices will average $57 a barrel in 2017, according to the median of at least 20 analyst estimates compiled by Bloomberg.
Progress will be slow. The crude glut will take a long time to dissipate, meaning only gradual price gains, said Michael Hsueh, a strategist at Deutsche Bank AG. West Texas Intermediate, the U.S. benchmark, will average $49.50 in the fourth quarter before breaking decisively above $50 next year, the analysts say.
Reference: Reuters,Bloomberg
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