The Aussie/Japanese yen (AUD/JPY) currency pair has bounced strongly off a key support level today, suggesting that the recent downward trend may have come to a halt, at least for the time being anyway.
Once again, the AUssie/U.S. Dollar (AUD/USD) currency pair is back, banging its head against the ceiling around that 0.7730-80 resistance range. Relative to other major currencies, though, the Aussie has performed rather well in recent times. So, it may finally clear this resistance zone at the umpteenth time of asking.
A day after their biggest daily gains of the year so far, U.S. equity indices are heading for an unchanged open on Thursday as investors await more commentary from the Fed ahead of its blackout period.
In addition to Trump’s speech, we had some important economic data out of Asia overnight. Specifically, from Australia and China. In Australia, the fourth quarter GDP came in at 1.1%. This was much stronger than 0.7% expected and more than made up for the surprise contraction of 0.5% in Q3.
Earlier today, the U.S. Dollar Index extended losses against the basket of the major currencies as yesterday’s Fed statement didn’t give clear signal on the timing of its next rate hike. How did this drop affect the technical picture of euro/U.S. dollar (EUR/USD) currency pair, USD/CAD and AUD/USD?
The dollar fell to its lowest since mid-November on Thursday after the Federal Reserve disappointed investors hoping for a clear sign of a March interest rate rise, while the Australian dollar rallied after data showing a record trade surplus. Money markets had shown a 20% chance of a rise in U.S. rates next month but that slipped to as little as 15 percent despite the Fed sending a broadly upbeat message on the economy.