Asian currencies saw a slight decline on Wednesday as the U.S. dollar regained some lost ground. Interestingly, the Australian dollar, however, defied this trend. The currency was buoyed by stronger-than-expected inflation data, making it a notable outlier in the region.
The U.S. dollar's recent recovery, though limited, has impacted regional markets. Traders are optimistic that an interest rate cut by the Federal Reserve is on the horizon. This week’s inflation data is anticipated to provide further clarity on this potential cut. Despite the dollar's rebound, market sentiment towards Asian currencies remains cautious. The recent imposition of steep trade tariffs by Canada on China’s electric vehicle sector has added to this uncertainty.
The Australian dollar stood out among its peers, reaching a near eight-month high. The AUD/USD pair rose by 0.1% after July's consumer price index (CPI) data exceeded expectations. While headline CPI saw a 3.5% increase, underlying CPI fell to 3.7%. However, this figure still remains above the Reserve Bank of Australia’s (RBA) target of 2% to 3%. This sticky inflation has led to increased speculation that the RBA might maintain higher rates for an extended period or even raise them further. Despite this, analysts at ANZ believe the RBA’s current trajectory is unlikely to change.
Broader Asian currencies exhibited a flat-to-low movement. The Japanese yen rose against the dollar, supported by expectations of more interest rate hikes from the Bank of Japan. Additionally, Tokyo's upcoming inflation data is expected to provide more insights. The Chinese yuan, South Korean won, and Singapore dollar also saw minor fluctuations. Meanwhile, the Indian rupee stabilized after nearing record lows.
Stay informed on the latest shifts in the global Forex market by visiting our partner website for real-time updates. https://www.dailyfx.com/forex-rates#currencies
Asian currencies decline as the U.S. dollar recovered, but the Australian dollar held strong, supported by unexpected higher inflation data.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
日本語
English
Comment (0)