Tag Archive: $AUD

FX Daily, August 27: A Dog Day of Summer

2018-08-27

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2018-08-27

Last week's dollar losses were initially extended in Asia before it came back bid. The euro briefly poked through $1.1650 for the first time in three weeks. However, the gains were sold into, and the euro finished the Asian session near $1.16, where there is a 782 mln euro option expiring, and 2.4 bln euros struck at $1.1625.

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FX Daily, August 24: Greenback Marks Time Ahead of Powell

2018-08-24

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2018-08-24

The US dollar is paring some of yesterday's gains in quiet turnover ahead of Fed Chief Powell's speech at Jackson Hole, the week's last highlight. The euro and sterling are trading inside yesterday's ranges, which the dollar has extended its gains against the yen to reach a two-week high near JPY111.50.

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FX Daily, August 23: Dollar Rebounds

2018-08-23

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2018-08-23

After correcting lower since the middle of last week, and pushed faster if not further by President Trump's comments, the US dollar is rebounding against most of the major and emerging market currencies today. After an initial wobble on the back of the FOMC minutes, the greenback's recovery began in earnest.

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FX Daily, August 22: Markets Take US Political Developments in Stride

2018-08-22

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2018-08-22

News that President Trump's personal lawyer claimed he was instructed by the candidate to commit a federal crime and, separately, his the former campaign manager was found guilty on eight counts is hardly impacting the global capital markets.

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FX Daily, August 21: Trump Comments Hit Dollar, Little Impact on Rates

2018-08-21

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2018-08-21

The US dollar is broadly lower following President Trump's comments yesterday, criticising Fed policy and reiterating his previously made claim that China and the EU are manipulating their currencies. We suggested that last week's presidential tweet that identified strong capital inflows into the US may not have been written by President Trump.

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FX Daily, August 16: Emerging Markets Stabilize, Dollar Eases a Little

2018-08-16

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2018-08-16

Two developments have helped turned sentiment, or at least arrested the markets' momentum. First, the developments in Turkey, where officials have taken a few measures that will make it somewhat more difficult to access the lira.

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FX Daily, August 14: Brief Respite but Little Relief

2018-08-14

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2018-08-14

Corrective pressures grip the capital markets today, helped by the easing of the selling pressure on Turkey, but its more a respite than a relief as no new policy initiatives are behind the lira's upticks. The implication of this is that it is unlikely to last. In fact, the dollar's low in early Europe a just above TRY6.41 after trading a little above TRY7.23 yesterday may be about the most that can reasonably be expected.

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FX Daily, August 13: Turkey Drives Risk-Off, but Pressure Abating

2018-08-13

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2018-08-13

The failure of Turkey to grab the bull by the horns, so to speak, and come to grips with the situation saw the dollar soar above TRY7.23(from TRY6.43 at the end of last week) and to ZAR15.55 (from ZAR14.09). The Mexican peso, the strongest currency this year, and which has been partially protected by prospects of a new NAFTA agreement has suffered as well.

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FX Daily, August 10: The Dollar Muscles Higher as Turkey Melts Down

2018-08-10

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2018-08-10

The US dollar has surged. The main impetus comes from the dramatic slide in the Turkish lira. After moving above TRY5.0 yesterday, it reached TRY6.30 today before stabilizing a little below TRY6.0 as the European morning progressed. The trigger seemed to be the lack of credibility of the government's response as investors await officials to elaborate on the outline of the "new economic model" provided yesterday.

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FX Daily, August 07: Turn Around Tuesday for the Greenback

2018-08-07

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2018-08-07

The US dollar is pulling back today after yesterday's advance. All the major currencies are higher and even the Turkish lira, which plunged nearly 5% yesterday to cap a six-day slide, is trading firmer today ([email protected]). The dollar's losses are modest and appear corrective in nature.

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FX Daily, August 03: Greenback Remains Firm Ahead of Jobs, JGBs Stabilize, Italian Debt Moves into Spotlight

2018-08-03

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2018-08-03

The US dollar is trading at the upper end of its recent ranges against the euro and sterling. The euro finished below $1.16 yesterday for the first time since the end of June and has not been able to resurface that level so far today.

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FX Daily, July 30: Equities, Bonds, and the Dollar Start Week Softer

2018-07-30

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2018-07-30

The week's big events lie ahead. It is seen as the last important week before the dog days of summer when many participants will take holidays. The BOJ's two-day meeting concludes tomorrow. Speculation that the BOJ is looking for ways to tweak its program continues to spur a small taper-lite tantrum in Tokyo.

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FX Daily, July 27: Greenback Remains Firm Ahead of Q2 GDP

2018-07-27

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2018-07-27

The US dollar is trading firmly in Europe after consolidating yesterday's gains during the Asian session and ahead of the first look at Q2 GDP. Yesterday's economic reports, including durable goods orders and inventory data, saw the Atlanta Fed's GDPNow tracker lower its forecast to 3.8% from 4.5%.

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FX Daily, July 26: Equities like EU-US Trade Truce more than the Euro

2018-07-26

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2018-07-26

The markets generated a collective sigh when Juncker and Trump announced that there would be no new tariffs while new trade negotiations took place.  This was particularly important because Trump reportedly wanted to press ahead with a 25% tariff on car imports.  It was also announced that the EU would buy more soy and liquid natural gas from the US. 

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FX Daily, July 25: Narrow Ranges Prevail

2018-07-25

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2018-07-25

The US dollar is trapped in narrow trading ranges. That itself is news. At the end of last week ago, the US President seemed to have opened another front in his campaign to re-orient US relationships by appearing to talk the dollar down. Contrary to fears, and media headlines of a currency war, the dollar is fairly stable.

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FX Daily, July 24: China Turns To Domestic Stimulus, Weighs on Yuan but Lifts Stocks

2018-07-24

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2018-07-24

Following a record injection via the medium-term lending facility yesterday, China's officials unveiled a set of policies designed to support the weakening economy that soon could face a substantial drag from US tariffs. The effort focuses on boosting domestic demand. Measures include targetted tax cuts and accelerating new infrastructure.

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FX Daily, July 20: Dollar Consolidates after Trump Wades In

2018-07-20

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2018-07-20

The US dollar is little changed but mostly softer as the week draws to a close. The market is digesting the implications of yesterday's comments by President Trump about interest rates and foreign exchange, and without fresh economic data, are content to go into the weekend. Since Trump's comments yesterday, the euro has not been below $1.1625 nor above $1.1680.

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FX Daily, July 19: Greenback Extends Gains

2018-07-19

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2018-07-19

The US dollar is extending its recent gains against most of the world's currencies.   We continue to see the most compelling case for the macro driver being the diverging policy mixes.  There are also more immediate factors too.  The surprisingly poor UK retail sales report, for example, managed to do what the Brexit chaos and softer than expected CPI fail to do. 

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FX Daily, July 18: Greenback Extends Gains-For Now

2018-07-18

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2018-07-18

After softening in Europe yesterday, the dollar recovered in the North American session with the help of assurances by Fed Chair Powell who reaffirmed the path gradual path despite clear recognition that tariffs threaten wages and growth.  The greenback has extended those gains today and is higher against all the emerging market currencies, expected the Turkish lira, which is slightly firmer.

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FX Daily, July 17: Dollar on Back Foot Ahead of Powell

2018-07-17

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2018-07-17

The US dollar eased in Asia session and the European morning. The greenback had appeared technically vulnerable, and the economic news stream is light. Sterling, unlike most of the other major currencies, remains within yesterday's range. Yesterday's high, a little above $1.3290, maybe reinforced a little today by the GBP245 mln $1.33 option that is expiring. Brexit concerns may also be acting as a drag.

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