On Friday, the greenback remained on tenterhooks, finding itself on track for a moderate weekly soar ahead of Fed Chair Janet Yellen's long-awaited speech that some believe could ensure clarity on whether American interest rates will soar this year or not.
The US dollar dipped 0.1% against the Japanese yen at 100.46 yen, while it remained intact against the euro at $1.1290.
The dollar index, estimating the greenback’s value against six key counterparts, slumped 0.1% to 94.718.
Later on Friday, Fed Chair is expected to deliver her speech at a global major bank meeting in Jackson Hole, Wyoming. Yellen could provide a clear signal that the Fed is all geared up towards a rate hike this year, although many experts are assured that she’ll stick to her less concrete stance that monetary policy appears to be data-dependent and a rate lift is probable.
The anticipation is quite exaggerated, especially considering that Yellen is considered to be one of the most balanced and pragmatic speakers.
Yen rebounds in Asia
Today, the Japanese yen rebounded during Asia trade after consumer prices data from Tokyo revealed that the core measure decreased more than expected. Moreover, attention is currently focused on a gathering of key bankers in the US state of Wyoming later in the day with the Fed Chair expected to provide fresh views.
The currency pair USD/JPY traded at 100.47 with a 0.05% sink, while AUD/USD achieved 0.7629, rising 0.14%.
In Japan, July’s national core CPI headed south 0.5% year-on-year, which is more than the 0.4% decrease observed, while national CPI lost 0.4% as expected in data, which is currently calculated under a 2015 base year with updated weightings.
The US dollar index, estimating the greenback’s value against a trade-weighted basket of six key currencies, sank 0.06%, getting to 94.62.
The annual economic symposium has found itself in the spotlight with Fed Chair’s opening remarks on Friday. Other major bankers are expected to discuss and also consider the future of monetary policy in the aftermath of the financial downtime and a low interest rate era.
On Thursday, the major American currency happened to be range-bound during illiquid Asia trade as key currencies kept treading water ahead of the global major bankers' gathering in Jackson Hole, Wyoming, at which Fed Chair Janet Yellen might offer fresh clues on American monetary policy.
Fed officials including Vice Chairman Stanley Fischer along with New York Fed President William Dudley have recently helped some traders to lift their bets that the Fed is braced for rate hikes again sooner rather than later, while some financial analysts foresee Yellen will echo their signals.
On Wednesday, futures markets were indicating an 18% probability that the American major financial institution would lift rates at its policy gathering next month, and an approximately 50% chance of a rate hike in December, as CME Group's FedWatch states.
A portion of the financial market is currently expecting hawkish overtones after Dudley.
Aussie and Kiwi head north ahead of Yellen’s speech
The Australian as well as New Zealand dollars went up against their American counterpart, as sentiment on the US dollar turned more fragile ahead of American data due later in the day and a Yellen’s speech on Friday.
The currency pair AUD/USD soared 0.21%, trading at 0.7629.
Market participants are waiting to see if Yellen will restate her hawkish view of the American economy expressed by Fed representatives the previous week or echo the minutes of the Fed’s July gathering, which pointed out that Fed officials are divided on when to lift rates.
Traders were also looking ahead to reports on American jobless claims as well as durables goods orders, due later Thursday, for further clues on the strength of the US economy.
The currency pair NZD/USD descended 0.08%, being worth 0.7319, thus re-approaching a recent 15-month peak of 0.7347.
Meanwhile, the commodity currencies gained some support as crude prices bounced back on Thursday, notwithstanding a sudden soar in American stockpiles last week.
On Wednesday, the evergreen buck grew, moving off its recent minimums against the major Japanese currency overnight, as financial markets looked to a meeting of global major bankers in Jackson Hole, Wyoming for hints whether the Fed is braced for raising interest rates again or not.
Tuesday’s data revealed that in July, new American single-family home sales suddenly soared, reaching their highest value in almost nine years as demand surged broadly, brightening the housing market outlook.
At the end of the week, Fed Chair Janet Yellen is expected to address the key bankers gathered for the annual mountain retreat, which starts on Thursday.
Recent hawkish comments from Fed Vice Chairman Stanley Fischer as well as New York Fed President William Dudley have spurred some investors' hopes that Janet Yellen might take a less cautious tone.
The US dollar soared 0.1% to 100.30 yen having nudged below 100 yen overnight to 99.925.
The dollar index, traditionally estimating the evergreen buck’s strength against a basket of six key counterparts, grew 0.1%, being worth 94.593.
Aussie and Kiwi tumble moderately in Asia
The New Zealand and Australian dollars descended modestly after recent data revealed that missed hopes as well as cautious trade ruled ahead remarks due at the end of the trading week from the Fed Chair.
In Australia, construction work done edged down 3.7% during the second quarter, quite below the tumble of 1.9% observed quarter-on-quarter. Earlier, in New Zealand, July’s trade balance came in at a deficit of about NZ$433 million month-on-month as well as at a deficit of NZ$3.03 billion year-on-year. Both those outcomes have turned to be wider than expected.
The currency pair NZD/USD was worth 0.7285, down 0.05%. Meanwhile, AUD/USD sagged 0.01%, trading at 0.7614. USD/JPY traded at 100.26, showing a 0.02% rise.
Overnight, the greenback remained broadly lower against the other key currencies, as market participants remained cautious ahead of Friday’s statement by Fed Chair Janet Yellen.
In June, new home sales were revised down to 582,000 units a 1.7% revenue, from the previous reading of +3.5% to 592,000 units.
On Tuesday, the evergreen buck tumbled against the Japanese yen, while the New Zealand dollar went up right after the country’s major financial institution informed that they don’t see the necessity for a rapid succession of interest rate drops.
The evergreen buck lost 0.1% to 100.220 against the safe-haven Japanese yen amid a pullback in Tokyo shares.
The greenback had soared to nearly 101.00 yen overnight, reacting to hawkish-sounding comments by Federal Reserve Vice Chair Stanley Fischer.
The euro grew 0.1% to $1.1332, thus stepping off an overnight minimum of $1.1271.
The Australian dollar ascended 0.1%, being worth $0.7638 , moving up on the coattails of the New Zealand dollar.
The New Zealand dollar appeared to be a relatively big mover in a subdued Asian trading session.
The New Zealand dollar earned 0.6%, being worth $0.7308 after Reserve Bank of New Zealand Governor Graeme Wheeler informed that the current interest rate track suggests further monetary easing, although he didn’t see the need for an instant series of rate drops.
Kiwi rises further along with yen and Aussie
The New Zealand dollar kept rising in Asia, notwithstanding remarks from RBNZ Governor Graeme Wheeler on the scope for further interest rate drops, while the Australian dollar and the Japanese yen ascended too, following a light regional data day.
The currency pair NZD/USD was worth 0.7298, rising 0.36%. Meanwhile, AUD/USD traded at 0.7635, demonstrating a 0.20% soar, while USD/JPY was worth 100.13, tumbling 0.20%.
The US dollar index, gauging the US dollar’s value against a trade-weighted basket of six key counterparts, traded 94.46, descending 0.06%.
Traders are currently focused on a highly anticipated speech by Fed Chair Janet Yellen at the annual gathering of top major bankers as well as economists in Jackson Hole, Wyoming, this week for new signals on the timing of the approaching US rate lift.
Overnight, the evergreen buck pared profits against the other key currencies in subdued trade on Monday, though hopes for a probable American rate lift before the end of the year still ensure support to the US dollar.
On Tuesday, the evergreen buck hit one-month minimum against the Japanese yen, staying on the defensive after recent American economic data were seen likely to restrict the prospects of a near-term Fed interest rate lift.
The dollar tumbled 0.8% to 100.43 yen and hit a minimum of 100.355 yen at one point, the dollar’s lowest reading against the yen in more than a month.
It feels like there’s a broad acceleration in greenback-selling momentum.
Against a basket of six key currencies, the major American currency sagged 0.2%, hitting 95.417.
As for the common currency, it rose 0.1%, getting to $1.1195. Against the Japanese yen, the euro slumped 0.7% to 112.45 yen.
The greenback has rebounded against the Japanese yen and the common currency after weaker-than-expected July retail sales were observed likely to delay a Fed rate lift.
The markets will wait for American data later in the day including housing starts, consumer prices as well as industrial output for another chance to estimate the health of the economy.
Aussie holds narrow revenues after RBA board views on inflation
The Australian dollar held revenues during Asia trade after Australia major bank minutes noted uncertainty in inflation predictions as market participants kept monitoring policy moves by regional major banks.
The currency pair AUD/USD traded at 0.7677, showing a 0.05% rise, while USD/JPY traded at 101.03, tumbling 0.22%.
The US dollar index, measuring the greenback’s strength against a trade-weighted basket of six currencies, sank 0.03%, trading at 95.55.
Overnight, the evergreen buck sagged on Monday as a rash of subdued economic data in Asia backed the possibility for further stimulus measures from major banks, applying downside pressure on the volatile greenback.
On Monday, traders kept monitoring global major bank activity closely ahead of next week's Jackson Hole Summit for major bankers in Wyoming.
Meanwhile, the Nikkei dropped 0.3% amid subdued economic growth in Japan during the three-month period through June, driving concerns that further stimulus plans could be forthcoming right before the end of the year.