Author
FXStreet Team
FXStreet
Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.
AUD/USD consolidates the previous day's losses to a near one-month low, trading below 0.7100 during the Asian session on Thursday as the US Dollar pauses its hawkish, Fed-inspired rally to its highest level since late July. Meanwhile, the US-Iran standoff keeps the geopolitical risk premium in play and underpins the safe-haven buck, capping the Aussie despite RBA rate-hike bets.
USD/JPY drifts lower during the Asian session on Thursday, snapping a three-day winning streak to a nearly two-week top set the previous day. The US Dollar pauses following the post-Fed rally to its highest level since late July, while a more hawkish repricing of the BoJ's policy normalization path supports the Japanese Yen. This drags the pair below 156.00 as the focus shifts to the BoJ meeting, starting today.
Gold climbs to the $4,300 neighborhood during the Asian session on Thursday, reversing much of the previous day's losses to a six-week low as the US Dollar eases from its highest level since late July. Meanwhile, oil-driven inflation fears continue to fuel rate hike bets on the back of the Fed's hawkish outlook. Furthermore, US-Iran tensions favor USD bulls and should cap the non-yielding bullion.
Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.
