The US dollar surged Tuesday on expectations of prolonged high interest rates, while the Australian dollar fell despite China's LPR cut.
EBC Forex Snapshot
20 Feb 2024
The US dollar rose broadly on Tuesday on mounting expectations of higher-for-longer interest rates in the US. The Australian dollar dropped despite China’s latest decision to lower LPRs.
The RBA stood pat on its first meeting of the year on cooling inflation, weaker-than-expected jobs and consumer spending reports while signalling further tightening is still possible, minutes of the meeting showed.
The country’s benchmark rate is lower than many other developed nations where inflation are more tamed. Its 425 bps of hikes in the current tightening cycle trail both the US and New Zealand’s 525 bps.
Citi (as of 5 Feb) | HSBC (as of 20 Feb) | |||
support | resistance | support | resistance | |
EUR/USD | 1.0724 | 1.1139 | 1.0681 | 1.0885 |
GBP/USD | 1.2487 | 1.2827 | 1.2481 | 1.2738 |
USD/CHF | 0.8333 | 0.8728 | 0.8620 | 0.8954 |
AUD/USD | 0.6500 | 0.6900 | 0.6449 | 0.6618 |
USD/CAD | 1.3379 | 1.3552 | 1.3372 | 1.3595 |
USD/JPY | 146.09 | 148.80 | 147.03 | 152.03 |
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.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
Following strong economic news, the dollar was steady on Friday. US GDP grew at a 2.8% annual rate last quarter, beating expectations.
2024-07-26The yen reached a 2.5-month high on Thursday, with the dollar, euro, and sterling falling over 1% ahead of next week's BOJ meeting.
2024-07-25The US dollar rose on Wednesday as traders awaited inflation data. June home sales fell more than expected, and median prices hit a record high.
2024-07-24