Australian dollar slips despite fading Omicron concerns
The Australian dollar fell slightly against most currencies as concerns about the Omicron eased, amid improved risk-appetite in assets such as commodities, currencies and stocks.
Trading is calm during this week as global markets are now preparing for the end of 2021.
A study on cases infected with the omicron variant suggests lower risk of hospitalization and death compared to the delta variant.
Many countries have tightened their precautionary measures amid the holidays season, but none re-imposed full lockdown.
However, the markets are focused on the growing numbers of infections in the UK and several other European countries.
As of 17:35 GMT, AUD/USD fell 0.1% to 0.7229, after hitting a high of 0.7265, and a low of 0.7219.
US stocks extend gains amid optimism about containing Omicron
US stock indices rose on Tuesday, amid continued optimism about the Omicron variant.
Trading is calm during this week as global markets are now preparing for the end of 2021.
A study on cases infected with the omicron variant suggests lower risk of hospitalization and death compared to the delta variant.
Many countries have tightened their precautionary measures amid the holidays season, but none re-imposed full lockdown.
However, the markets are focused on the growing numbers of infections in the UK and several other European countries.
As for stocks, Dow Jones rose 0.5% or 180 points to 36,483 as of 15:36 GMT, and S&P 500 rose 0.2% or 11 points to 4,801, while Nasdaq rose 0.1% or 11 points to 15,882.
Palladium breaks $2,000 barrier anew
Palladium prices rose on Tuesday, as the US dollar edged higher against most currencies, while concerns about the Omicron variant eased.
Global markets are now preparing for the end of 2021, after returning from the Christmas holidays.
Concerns about the pandemic are still dominating markets due to the spread of the Omicron variant in several countries, especially in Europe.
US President Joe Biden confirmed last week that his administration would not impose a full lockdown due to Omicron, but asked citizens to follow precautionary measures during the holidays.
The dollar index rose against a basket of major currencies by less than 0.1% to 96.1 points as of 14:36 GMT, after hitting a high of 96.1 points and a low of 96.00 points.
Palladium March futures rose by 2.8% to $2,001.5 an ounce, as of 14:37 GMT.
Dollar dives to 2-week low on slowing demand
The US dollar fell against a basket of global currencies on Tuesday, and hit a 2-week low, resuming losses as demand slowed down, while the US stock indices jumped to new records.
The dollar index fell 0.1% to 2-week low at 95.99 points, after opening at 96.07 points, and a high at 96.14 points.
The dollar index was flat yesterday, after falling for four straight days.
The greenback lost 0.6% last week, its second weekly loss in 3 weeks, and the largest weekly loss since August, due to political tensions over the US spending plans.
Demand for the US dollar slowed as concerns about the impact of Omicron on the global economy eased, while most of the global stock markets rallied, led by Wall Street's jump to new highs, despite growing expectations of interest rate hikes at least 3 times during 2022.