G10 Currencies and Renminbi Outlook (September): The US dollar maintains its strength; it is too early to assess the risk of a lower trading range for the Japanese yen.
Main pointsThe U.S. dollar remains strong, but market reaction has been muted. Despite a rebound in energy prices, robust CPI and employment data, and hawkish comments from Federal Reserve officials,
Weekly FX Market Report: Turning Bullish on the US Dollar Again
Key View: Re-establish long positions in the US dollar, favoring it against low-yielding currencies such as the Swedish krona and the Canadian dollar. Despite earlier concerns about USD depreciation, hawkish remarks by Federal Reserve Chair Warsh and robust employment data have bolstered the bullish case for the greenback. The undervaluation of the USD and the resilience of the US economy have prompted analysts to revert to the positive stance on the dollar maintained since mid-May. In particular, the USD offers attractiveness relative to low-yielding currencies like the SEK and CAD. Maintain a tactical long position on the Japanese yen, but remain cautious in the medium term as domestic policy in Japan undergoes changes; the Government Pension Investment Fund...
Australian Dollar Gets Lift From Fading Fed Hike Bets
The Australian dollar rallied to its highest levels since mid-May on Friday, as bets on a coming interest rate increase by the U.S. Federal Reserve eased somewhat.
CBA Economists Expect RBA to Hike Cash Rate to 4.6% After Inflation Surprise
Commonwealth Bank of Australia (ASX:CBA) economists now expect the Reserve Bank of Australia (RBA) to raise the cash rate by 25 basis points in November to 4.6%, following a stronger-than-expected
Monetary Policy in Australia Somewhat Restrictive, RBA Assistant Gov Says
Monetary policy in Australia is restrictive with three interest rate increases at the start of the year now exerting a force on the economy, supported by a high Australian dollar, says Chris Kent, Reserve Bank of Australia Assistant Governor.
Hawkish RBA Governor Puts Some Spine in Australian Dollar -- Market Talk
The Australian dollar has risen back near 70.60 US cents supported by a more hawkish post‐meeting press conference on Tuesday by Michele Bullock, the governor of the Reserve Bank of Australia.