The US dollar firmed near a three-month peak
2024-02-06
Summary:
USD steadies near a 3-month high; the Fed is unlikely to cut rates in March. AUD rises on RBA, hinting at further tightening possibilities.
EBC Forex Snapshot
6 Feb 2024
The US dollar firmed near a three-month peak as the Fed is not expected to cut interest rates in March. The Australian dollar rose after the RBA said further tightening could not be ruled out.
The central bank held interest rates steady as expected and its surprisingly hawkish tone indicates that monetary easing will unlikely come anytime soon. Futures markets now see the first cut announced on September.
The Australian economy has slowed to a crawl, labour market has softened and consumer spending has floundered amid higher living costs. But China’s pledge to prop up economy and India’s growth momentum may act as a buffer.
| Citi (as of 29 Jan) | HSBC (as of 6 Feb) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0822 | 1.1139 | 1.0664 | 1.0875 |
| GBP/USD | 1.2487 | 1.2827 | 1.2440 | 1.2699 |
| USD/CHF | 0.8333 | 0.8728 | 0.8593 | 0.8772 |
| AUD/USD | 0.6526 | 0.6900 | 0.6425 | 0.6582 |
| USD/CAD | 1.3379 | 1.3619 | 1.3414 | 1.3603 |
| USD/JPY | 145.09 | 148.80 | 146.74 | 149.75 |
The green numbers in the table indicate an increase in data, the red numbers indicate a decrease in data, and the black numbers indicate that the data remains unchanged.
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