The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
Australian dollar rebounds on firmer commodity prices
On Wednesday, the Japanese yen kept rebounding, while the Chinese Yuan stayed along a moderate downward path versus the US currency, while the Australian dollar edged up due to firmer commodity prices.
Political concerns in America might also be hitting the greenback, with the US dollar index, measuring the US currency’s strength versus six key currencies, sliding 0.08% to 95.41 in Asia. The previous week, the greenback went up against crucial currencies after data disclosed the previous month the American economy generated 222,000 jobs, which is more than expected, while figures for May and April were revised upwards too.
In the days ahead, market participants are going to pay attention to Fed Chair Janet Yellen's testimony on monetary policy and American data on retail sales and inflation expected to emerge on Friday. Additionally, they will also monitor China’s trade data. PPI data from Japan is expected too. The Fed lifted interest rates at its June gathering and also stuck to its prediction for one more rate increase this year, although the subdued inflation outlook has bolstered doubts over whether Fed officials will be able to keep to their planned tightening path or not.
Firmer iron ore prices backed the Australian dollar versus the greenback. It gained 0.25% by mid-morning, showing 0.7658.
The US CPI and core CPI are due at 15:30 MT time on May 12.
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
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