European Forex market: RBA releases “hawk”, Australian dollar soars 0.9%, intraday focus shifts to Powell
Investing.com – In the European market on Tuesday (7th), the US dollar index fell slightly. Investors waited for Fed Chairman Jerome Powell’s speech tonight, while the Australian dollar surged after the RBA raised interest rates.
As of 17:32 Beijing time (04:32 am Eastern Time), the dollar, which measures the dollar’s trend against six major currencies on a trade-weighted basis, was down 0.10% at 103.395; it was down 0.17% at 103.44, off about a month’s high.
The benchmark US Treasury yield was 3.619%, up from 3.8161%.
On Friday (3rd), the US strongly reversed traders’ expectations of interest rate cuts this year and pushed the dollar up sharply.
However, the focus now turns to the Fed chairman’s speech to the Economic Club of Washington tonight.
ING analysts said, “Fed Chairman Jerome Powell outlined a possible ‘canary’ scenario in which inflation falls without a significant increase in unemployment at last week’s post-FOMC press conference. We need to watch how confident he is in this situation. “
It rose 0.90% to 0.6943 after raising the cash rate by 25 basis points and signaling further gains ahead.
“Further rate rises will be needed in the coming months to ensure inflation returns to target,” said RBA Governor Philip Lowe.
It fell 0.10% to 1.0720, after slipping to 1.0709 in the previous session, its lowest level since January 9.
Data earlier on Tuesday showed a sharper-than-expected fall of 3.1% from the previous month, instead of the expected 0.7% drop.
It rose 0.07 percent to 1.2025 after falling to a one-month low of 1.2006 in the previous session.
Britain’s housing market stabilized in January, breaking four consecutive months of decline, after falling 1.3 percent in the previous month, according to the mortgage lender.
It fell 0.62% to 131.82, off a one-month high of 132.90 hit on Monday (6th), on news that Japan is set to elect a successor to current Governor Haruhiko Kuroda.
In addition, it fell 0.16% to 6.7840; it fell 0.10% to 6.7936. Reported at 2.914%.
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