Asian currencies consolidate as hawkish Fed signals support dollar; Australian dollar flat

  • Asian currencies consolidated against the dollar during early Asian trading.
  • Dollar traded at 159.98 yen, 1,377.10 won, while Australian dollar held US$0.7160.
  • Warsh’s Friday speech kept further Federal Reserve tightening under consideration if inflation remains elevated.

Asian currencies consolidated against the US Dollar in early trading, while the Australian Dollar was little changed at US$0.7160. The dollar stood at 159.98 yen and 1,377.10 won after Fed Chairman Warsh’s Friday speech reinforced the central bank’s inflation-fighting credibility without committing policymakers to a September rate increase. OCBC Group Research strategists said further tightening remained possible if inflation does not ease meaningfully, adding that a firmer US Dollar could pressure Asian foreign-exchange markets. Earlier market indicators showed the probability of a 25-basis-point hike at the next Federal Open Market Committee meeting rising to 42% from 35% a week earlier, while the US Dollar Index reached 104.80, its highest level in two weeks. Investors are also awaiting China’s official manufacturing and non-manufacturing Purchasing Managers’ Index data. Reuters-polled economists expect manufacturing PMI to remain at 49.5 for a third consecutive month, a contractionary reading that could weigh on Australian exports such as iron ore and coal. AUD/USD is focused on support at 0.7150 and 0.7100, with resistance at 0.7200 and 0.7250.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.
Asian currencies consolidate as hawkish Fed signals support dollar; Australian dollar flat - CoinPost Terminal