Broad based USD strength – key theme in Asia, EU PMIs eyed

By FXStreet FXStreet (Mumbai) – The latest chatter ahead of the Fed announcement due later in the NY session resulted in a renewed USD rally across the board, which triggered volatility amid a data-quiet Asian session. The commodity-currencies suffered heavily in Asia on the back of the ongoing rout in base metals and oil prices.

Key headlines in Asia

Fed may hike the discount rate today – Chatter

Japan considering to boost minimum wage by 3% – Nikkei

Fed’s Williams: Strong case for a December rate hike

Dominating themes in Asia – centered on JPY, AUD, NZD

All the Asia-pac currencies were relentlessly offered in Asia as the US dollar extended its bullish run in to fresh multi-month highs on news that the Fed is likely to hike the discount rates later today. Such a move raised bets for a Dec Fed rate lift-off and thus bolstered the buck. USD/JPY extended to the upside and took out hourly 100-SMA to now trade around 123.25, with August highs on sight.

Both Antipodeans halted their last week’s winning streak and came under heavy selling pressure as the renewed sell-off across the commodities board added to the ongoing greenback and hence, dragged the OZ currencies lower. The …read more

Source:: FX Street