US Dollar on the back-foot as all eyes turn to the FED – hike or no hike?
By FXStreet FXStreet (Mumbai) – Broad based US dollar weakness remained the underlying theme in Asia, with markets responding little to the economic data released this session as attention now shifts towards the main highlight of this month – the Fed rate decision, which may or may not see US interest rates increase for the first time in nearly a decade.
Key headlines in Asia
New Zealand: Q2 GDP figures disappoint
ASX investigates tech issue, withdraw of liquidity in Aussie
Dominating themes in Asia – centered on JPY, AUD, NZD
We saw a calmer Asian session on Thursday, as the upcoming Fed outcome kept the Asian traders on the side-lines while the US dollar extended its weakness across the board backed by softer US CPI print.
USD/JPY extends recovery from 120.10 lows reached yesterday and now trades firmer near 120.65, as the Japanese yen remains undermined on the back of Japan’s ratings downgrade and widening trade deficit numbers.
The trade gap expanded from JPY268.1 billion in July to JPY569.7 billion last month, according to new customs data on Thursday, coming in slightly weaker than the forecast deficit of JPY540 billion.
The Antipodean currencies trade mixed, …read more
Source:: FX Street
