The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground for the third consecutive day and trading around 99.30 during Asian hours on Monday.
The AUD/USD pair touches a one-and-a-half-week low, around the 0.7140 region during the Asian session on Monday, though it lacks follow-through. Spot prices currently trade just above mid-0.7100s, down nearly 0.25% for the day.
The NZD/USD pair tumbles to around 0.5790 during the early Asian trading hours on Monday. The New Zealand Dollar (NZD) weakens against the US Dollar (USD) on a dovish hike from the Reserve Bank of New Zealand (RBNZ).
Silver (XAG/USD) kicks off the new week on a subdued note and oscillates in a narrow band above the $64.00 mark through the Asian session as traders seem hesitant to place directional bets ahead of key central bank event risks.
USD/CAD halts its three-day winning streak, trading around 1.3870 during Asian hours on Monday. The pair inches lower as the commodity-linked Canadian Dollar (CAD) receives support from elevated oil prices.
The USD/JPY pair attracts some buyers at the start of a new week and climbs closer to the 154.00 mark during the Asian session, reversing a part of Friday's losses.
Gold price (XAU/USD) loses ground to near $4,340 during the early Asian trading hours on Monday. The precious metal remains under selling pressure as hotter-than-expected US inflation data raised prospects that the Federal Reserve (Fed) will hike interest rates later this week.
West Texas Intermediate (WTI) oil price rebounds after falling nearly 4% in the previous trading day, hovering around $99.40 per barrel during Asian hours on Monday.
The GBP/USD pair struggles to capitalize on Friday's bounce from the vicinity of the monthly swing low and consolidates above the 1.3500 psychological mark at the start of a new week.
On Monday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7698 compared to Friday's fix of 6.7743 and 6.7083 Reuters estimate.
The EUR/USD pair declines to near 1.1585 during the early Asian session on Monday. The pair extends the decline amid aggressive Federal Reserve (Fed) rate-hike bets following hotter US inflation reports. Traders brace for the Fed interest rate decision later on Wednesday.
The AUD/USD pair edges lower to around 0.7160 during the early Asian session on Monday. Stronger-than-expected US inflation reports provide some support to the US Dollar (USD) against the Australian Dollar (AUD). All eyes will be on the US Federal Reserve (Fed) interest rate decision on Wednesday.
Iranian state media claimed an Iranian commercial vessel was struck in the Strait of Hormuz on Saturday, killing one person, amid an ongoing conflicts between the United States (US) and Iran for control over the crucial energy chokepoint, CNN reported.
Omani Foreign Minister Badr Albusaidi said that a meeting in Oman between Gulf countries and Iran to discuss possible agreements on the Strait of Hormuz, which had been scheduled for Monday, has been postponed, Reuters reported on Sunday.
The AUD/USD ended the day in the green but finished the week 0.45% lower amid growing bets that the Fed will raise rates next week, boosting the US Dollar. Nevertheless, on Friday, the pair traded at 0.7171, up a decent 0.38%.
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/SGD has rebounded strongly, with short-term momentum pointing higher but key resistance at 1.2705 expected to limit gains.
The USDCHF climbs over 0.40% on Friday after US consumer inflation data, coupled with Thursday's PPI, pushed investors to price in a Fed interest rate hike at next week's meeting. The pair trades at 0.8165 after rebounding from daily lows of 0.8124.
DBS Group Research expects Taiwan’s central bank to keep its policy rate unchanged on September 17, before raising it to 2.125% in December.
West Texas Intermediate (WTI) trades near $97.00, about 3.4% lower and on track for its first down session in five.
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann reports that USD/CNH has bounced sharply to 6.7153, with intraday gains likely capped near 6.7200.
Silver price registers gains of over 1%, yet it is trading below the ‘head and shoulders’ neckline, an indication that the overall trend in the short-term may be tilted to the downside. The XAG/USD trades at $64.24, after bouncing off daily lows of $62.94.
The US Dollar Index (DXY) closes the week near the 99.00 zone, little changed on the day and holding the ground it clawed back after a brief wobble on Thursday's US inflation release.
ING analysts Chris Turner and Padhraic Garvey argue the Bank of Japan is likely to hike 25bp to 1.25% and then proceed cautiously.
US Treasury yields fall during the North American session on Friday following the release of US inflation data, but are poised to finish the week higher. The US 10-year Treasury yield is down one basis point to 4.951% but has gained over 16 basis points, or 3.49%, this week.
MUFG’s Michael Wan notes that Asia FX and rates have stayed relatively stable despite sharply higher US Treasury yields, but he warns this resilience may not last in the near term.
USD/JPY is trading around 153.70 on Friday, down for the day after briefly spiking above 154.50 following the US inflation release.
The US Dollar Index (DXY) reverses earlier gains on Friday as a pullback in longer-dated US Treasury yields outweighs support from the latest US Consumer Price Index (CPI) report, which strengthened expectations that the Federal Reserve (Fed) will raise interest rates next week.
Gold (XAU/USD) price bounces off daily lows beneath $4,300 on Friday and reclaims the 100-day Simple Moving Average (SMA) of $4,335 following the release of US inflation data, which fueled speculation that a Federal Reserve (Fed) rate hike next week is almost certain.
EUR/GBP is easing on Friday and slipping toward the 0.8580 area. The cross had pushed to the top of its recent range in the high 0.8590s before running out of steam.
The Pound Sterling (GBP) climbs slightly against the US Dollar (USD) on Friday, up 0.10%, as the latest US consumer inflation report came in line with forecasts, and although money markets have increased the odds of a Federal Reserve (Fed) rate hike next week, traders faded the initial reaction.
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