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Dollar stayed broadly firm in Asian session today, after rallying on robust manufacturing data and significant rebound in treasury yields overnight. The spotlight now shifts to upcoming comments from Fed officials, including Governor Michelle Bowman and New York Fed President John Williams, as markets seek clues about the central bank's monetary easing path.
Currency markets shifted their attention towards the sell-off in Swiss Franc today, a reaction to the substantial rally observed in European and US treasury yields. With the 10-year yields in Germany and UK climbing back above 2.4% and towards 4.1% respectively, and US 10-year yield setting sights on 4.4%.
Australian Dollar finds itself on a broad-based downward trajectory following RBA's decision to maintain interest rates unchanged. Despite maintaining a tightening bias, RBA's announcement fell short of some speculations for a more hawkish outcome. In contrast, fellow commodity currencies, New Zealand Dollar and Canadian Dollar, continue to display strength. Kiwi is bracing for the upcoming RBNZ rate hike tomorrow, while Loonie rides the wave of this week's oil price rally.
Sterling surges to a 10-month high against Dollar today, as comments from a lone dove on the Bank of England's Monetary Policy Committee seem to have little impact. Pound's strength against Euro and Swiss Franc suggests a one-sided movement. Meanwhile, Australian Dollar remains the weakest performer following RBA's decision to hold interest rates steady. With Yen and Kiwi also weak, risk sentiment appears directionless. Dollar's performance is mixed, with the market awaiting tomorrow's ISM services report and Friday's non-farm payroll employment data for further i...