AUDUSD

The USD traded softer heading into the London interbank open, retracing from the gains seen yesterday following a near 10 bp spike in the 10-year US T-note yield, which touched a one-month high at 2.143%. This came as the S&P 500 and DJIA hit record highs. The narrow trade-weighted USDIndex ebbed to a 96.89 low earlier, though has remained above yesterday’s one-week low at 96.80, which was seen ahead of the perkier than expected core CPI and jobless claims data out of the US. EURUSD mirrored this price action in rising to an intraday high at 1.1275 and remaining shy of yesterday’s eight-day high at 1.1285. USDJPY settled to around 108.30-35 after printing a high at 108.61. The biggest mover has been the AUDUSD, which reestablishing a footing over 0.7000 and has key resistance at  last weeks high around 0.7025.

AUDUSD

 

While the Congressional testimonies of Fed Chair Powell this week signalled a 25 bp rate cut at the FOMC later this month, leaving the door open to a more aggressive policy action, a couple of other Fed speakers yesterday were a little less sanguine over the need for more stimulus. One thing to note is rising speculation in the markets that the Trump administration might intervene in the currency markets and weaken the USD as a means to leverage up its negotiating position in trade talks with China and other major economies. Another focus is the upcoming Q2 corporate earnings season, which will get into gear next week with “show and tells” from the banking sector. Trade warring and slowing global growth have set the scene for a possible earnings recession, which could catalyze a risk-off phase in global markets.

AUDUSD

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: risk aversion could send it sub-1.1180

EUR/USD capped by a critical Fibonacci resistance for two weeks in-a-row. The American dollar has closed the week on a high note as hopes for significant rate cuts faded.

EUR/USD News

GBP/USD: bears to retake control on a break below 1.2475

Renewed demand for the greenback has resulted in the GBP/USD pair giving back half of its Thursday’s gains at the end of the week, with the pair closing it just above the 1.2500 figure.

GBP/USD News

USD/JPY: bearish case firmer once below 107.20

The USD/JPY pair flirted with the 108.00 level by the end of the week on renewed demand for the greenback but retreated sharply from the level to settle at around 107.70.

USD/JPY News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Majors

Cryptocurrencies

Signatures