Currency Watch: Asia in Response to Fed Hawkish Rhetoric

Explore Asia currency trend post-Fed hawkish stance. Analysis of DXY, gold, AUD, NZD, JPY, EUR, CHF, GBP, CAD, and oil.

Federal Reserve Chair Jerome Powell’s speech provided little insight into US monetary policy in the US session. At the same time, Fed Governor Philip Jefferson adopted a more ‘hawkish’ stance, suggesting aggressive policy actions amid high uncertainty. The dollar index (DXY) reached 105.88 before retreating to 105.50. In the Asia session, DXY appeared vulnerable, likely declining to 105.30. The falling US dollar boosted gold prices to $1,960/oz, and WTI oil found support at $75.00 per barrel.

Currency Watch – Asia in Response to Fed Hawkish Rhetoric

Dollar Index (DXY)

• Next 24 Hours Bias: Medium Bearish

Gold (XAU)

• Next 24 Hours Bias: Weak, Bullish

Australian Dollar (AUD)

• AUD showed strength, rising to 0.6420 after an initial dip to 0.6400.
• Next 24 Hours Bias: Weak, Bullish

New Zealand Dollar (NZD)

• NZD found support at 0.5900, rising to 0.5930.
• Next 24 Hours Bias: Weak, Bullish

Japanese Yen (JPY)

• USD/JPY fluctuated around 151.00, likely edging lower.
• Next 24 Hours Bias: Weak, Bullish

Euro (EUR)

• EUR rebounded to 1.0720 and is likely to climb higher.
• Next 24 Hours Bias: Medium Bullish

Swiss Franc (CHF)

• USD/CHF dipped to 0.8977 and might resume a downtrend.
• Next 24 Hours Bias: Weak, Bullish

British Pound (GBP)

• GBP faced downward pressures, hovering around 1.2300.
• Next 24 Hours Bias: Weak, Bullish

Canadian Dollar (CAD)

• USD/CAD dropped to 1.3790, likely to remain under pressure.
• Next 24 Hours Bias: Weak Bearish

Oil 

• Oil prices faced pressure, slipping below $75.00 per barrel despite a lower-than-expected inventory build. However, a rebound occurred in Asian markets, possibly due to short-covering after recent sell-offs. The situation remains uncertain, with traders closely monitoring developments.
• Next 24 Hours Bias: Medium Bearish (indicating caution with a potential for further decline).

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