“We do not expect the US economic data to materially change market expectations about the Fed’s policy stance, the UDS will stay continue weak on the back of the negative real rate narrative” — Paul Ebeling
USD hanging near 5-month lows Tuesday as investors waited for eurozone inflation data and a US manufacturing survey, while the RMB Yuan steadied after China’s central bank took steps to limit its appreciation.
.DXY is back below 90 in early European trading, having hit as high as 90.447 Friday, when a measure of US inflation closely watched by the Fed posted its biggest annual rise since Y 1992.
The Australian dollar was still up around 0.5% Vs the Buck at 0739 GMT, at 0.77625.
The New Zealand dollar was up 0.1% at 0.72845. The Reserve Bank of New Zealand surprised markets last week by hinting at a future interest rate hike.
China’s RMB Yuan was steady after authorities ordered banks to increase their foreign exchange holdings, a move seen as an attempt to limit its fast appreciation.
Britain’s pound sterling hit a 3-yr high at 1.425 Vs USD during the Asian session.
The Canadian dollar was close to a 6-year high, up 0.3%, having strengthened for four months in a row as the outlook for the domestic economy improved.
Have a healthy week, Keep the Faith!