- Australian dollar among the worst performers on Tuesday after RBA meeting.
- US dollar up versus G10 currencies, DXY at monthly highs above 91.00.
The AUD/USD extended the decline and bottomed at 0.7562 during the American session, hitting the lowest level since December 28. It then rebounded, finding resistance at the 0.7590 area. It remains under pressure, as the US dollar remains the top performer.
Dollar outperforms versus G10, down against EMs
Equity prices in Wall Street are rising sharply. The Dow Jones rises by 2.01% and the Nasdaq 1.56%. US yields are higher for the day but off highs. The 10-year yields peaked at 1.11%, the highest in two weeks before pulling back modestly.
The US dollar is sharply up versus its G10 rivals. The DXY stands at 91.20, up 0.25% about to post the strongest close since December 1. The greenback is falling versus emerging market currencies that are on-demand amid risk appetite.
The Australian dollar is holding onto daily losses across the board, affected by the Reserve Bank of Australia meeting. The decline in gold, silver and AUD/NZD added weakens to the Aussie.
“While we were skeptical, some analysts were looking for some sort of tapering message. Instead, the RBA delivered quite the opposite. We suspect Australian policymakers are watching the apparent slowdown in China’s economy as closely as we are and is taking no chances with any sort of premature withdrawal of accommodation”, explained analysts at Brown Brother Harriman. The RBA kept rates unchanged and extended its QE beyond April, increasing the program by AUD100 bln.
RBA Governor Lowe will speak on Wednesday and has to testify to parliament on Friday. Also con Friday, the RBA will release its quarterly Statement on Monetary Policy.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.