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Currency Market Analysis

Oct 06, 2020 | Currency Market Analysis

Global Themes

USD lower as Trump move boosts markets

The USDSGD fell back towards nine-month lows overnight.

The SGD was helped by big gains in US sharemarkets that were boosted by news US President Donald Trump would leave hospital today.

The Dow Jones index gained 1.7%.

Euro stronger

The euro was stronger as markets turned more positive.

The Japanese yen fell.

The Australian dollar was steady as markets remained cautious ahead of some major local announcements today.

RBA, Australian budget

The main focus will be the Reserve Bank of Australia today. The RBA decision is due at 11.30am.

The RBA is mostly expected to cut interest rates from 0.25% to 0.10% but there are questions whether the RBA might wait to measure the impact of tonight’s Federal Budget before taking action.

The RBA might also introduce a new money-printing program but many economists believe the RBA will delay this until at least November.

Otherwise, key central bank speeches will be closely watched, with officials from the European Central Bank and US Federal Reserve due to speak later tonight.

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