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Currency Market Analysis

Sep 03, 2020 | Currency Market Analysis

Global Themes

USD rebound continues as euro slips

The US dollar’s recent rebound continued overnight with the USDSGD gaining from seven-month lows.

The US dollar tumbled last week after the US Federal Reserve signalled US rates will stay low for longer than previously anticipated, but the move lower had pushed momentum indicators to extremes.

The USDSGD gained 0.1%.

Aussie hit

The euro was the main victim of the USD’s strength with the EURUSD extending losses from two-year highs.,

The AUD was also weaker after Australia reported its worst GDP result on record.

Australian June-quarter GDP fell 7.0% in annual terms – more than three times as bad as the previous worst result seen during 1974’s oil crisis.

Chinese data due

Today’s early focus is on the Australian trade balance due at 9.30am AEST.

The market is looking for a sharp fall in the trade surplus from 8.0b to 5.0b.

Chinese services PMI is due at 9.45am.

Bank of England governor Andrew Bailey speaks at 10.00pm.

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