Currency Market Analysis

Feb 22, 2019 | Currency Market Analysis

Global Themes

US dollar higher as equities, commodities turn lower.

The US dollar staged a comeback overnight after a big reversal lower in share markets suggested the recent more positive mood was over.

The USDSGD gained 0.2%.

The euro and Japanese yen were both higher as safe haven currencies were favoured.

Red number day

The AUD fell sharply yesterday and returned to six-week lows after Westpac made the first move of the major retail banks and called for two rate cuts from the Reserve Bank of Australia by the end of the year.

The Aussie was also weighed down by reports from the major Chinese port town of Dalian that Australian thermal coal facing import restrictions.

The negative news overwhelmed a broadly positive jobs report that saw 39.1k new jobs created in January.

Lowe point

A big today of central bank speeches kicks-off with the RBA governor Philip Lowe’s testimony to the House of Representatives economics committee.

The uncertainty around the RBA’s next move is a major contributor the recent volatility in the AUD market.

European Central Bank president Mario Draghi speaks at 11.30pm tonight while a series of Federal Reserve board members also speak tonight.

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