Here’s what you need to know for Friday, September 16:
The US dollar maintains its dominance as the case for continued aggressive hikes by the Federal Reserve dominates the markets. DXY, which measures the USD against a basket of major rivals, ended the North American session unchanged but reached a high of 109.21 within the upper end of this week’s uptrend channel, having risen from a low of 109.42.
Retail sales rose 0.3% last month and the US dollar has held close to its recent highs, supported by views that the Federal Reserve will continue to tighten policy aggressively. Recent data, including the surprise rise in consumer prices in August, have reinforced the bullish case for the dollar, as investors anticipate a third consecutive 75 basis point hike in interest rates next Wednesday.
Meanwhile, the US 10-year Treasury bond yield rose 5 percentage points to 3.45%, and major currencies such as the yen came under pressure again, despite authorities intervening. verbally, putting the brakes on the currency after sharp declines. USD/JPY fell to 143.33.
GBP/USD bulls attempted a correction from a major support zone near the midpoint of the 1.1400 zone, with price recovering from a low of 1.1462 and now testing bear commitments at 1.1500.
EUR/USD remained trapped between a key 4-hour channel and consolidated at breakout levels of 1.0025 and 0.995. On an hourly basis, the pair moved sideways, preparing for a move in either direction.
As for the Australian dollar, it traded between a daily high around 0.6770 and the bears moved into the key 0.67 level, piercing it to a low of 0.6899. The share price stabilized after yesterday’s employment report was strong, adding 33.5k jobs in August, in line with forecasts, while the unemployment rate rose to 3.5% from 3.4%. ANZ bank analysts expect the Reserve Bank of Australia (RBA) to raise interest rates by 50 basis points: “The strong labor market report adds to the arguments made by the strong NAB business survey and US CPI data earlier this week for the RBA to raise interest rate in October by 50 basis points,” ANZ analysts said. In this way, the market enters a consolidation phase ahead of the weekend.
On the commodities front, WTI fell to $84.9/bbl as the US Department of Energy said its replenishment of oil reserves would likely involve deliveries after fiscal 2023. Gold fell 1.4 %, up to $1,662.
Source: Fx Street
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