The Republican-led US House of Representatives approved a war powers resolution on Wednesday to block President Donald Trump from continuing the conflict against Iran. The measure is largely symbolic as it must still pass the Senate and would need a two-thirds majority in both chambers to override an almost certain presidential veto.
Broadcom shares plunged more than 13 per cent in extended trading after missing Wall Street expectations for second-quarter revenue on Wednesday, while its top executive left a previous 2027 sales forecast unchanged in a rare sign that the AI chipmaker may be losing steam.
In currency markets, the yen strengthened 0.1 per cent to 159.88 per dollar, opening a little distance for the 160 level seen by traders as a trigger for intervention.
Bank of Japan Governor Kazuo Ueda said on Wednesday the central bank must discuss the pros and cons of raising interest rates if inflationary risks outweigh downside risks to the economy, in remarks that signalled a strong chance of a rate hike this month.
The Aussie dollar nudged 0.1 per cent higher after data showed Australia’s trade balance swung back into surplus in April after a surprise deficit the previous month, as a rebound in resource exports helped offset a surge in fuel imports.
The US dollar index, which measures the greenback’s strength against a basket of six currencies, held steady at 99.44 after a three-day rally which took the currency to its strongest level since Apr 7.
The yield on the US 10-year Treasury bond was down 1.4 basis points at 4.473 per cent.
Gold rose 0.9 per cent at US$4,473.61per ounce, staying firmly within the trading channel it has sat in since the middle of last month.
Bitcoin tumbled 4 per cent to a four-month low of US$62,321.87, while ether was down 1.9 per cent at US$1,744.70.
Bitcoin has dropped as much as 17 per cent in five straight days of declines, “undercut by a toxic combination of a stronger US dollar and rising yields, alongside a shift toward more cautious risk sentiment”, IG analyst Tony Sycamore wrote in a client note.
