Greenback sticks to range as Yellen's speech awaited

Greenback sticks to range as Yellen's speech awaited

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.

Bazooka

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