The greenback has been doing well in the market lately against the AUD and JPY. The sudden market shifts caused by hawkish federal rate hikes have helped it carry the momentum on last week. In addition, there was also a significant upsurge in government bonds just as the traders collectively sold them off. The USD is expected to post at least a 50 basis point hike throughout the next four FOMC meetings. Investors believe that the overnight index swaps would tighten the pricing and help the USD carry the momentum.
However, the other end is not as promising as it was a few weeks ago. Yes, the Australian dollar edged down substantially against the USD last week. At this time of dip, you can best US forex brokers platform. However, the Aussie dollar is not as hopeless as one might think after last week’s slide. Online currency trading Australia has risen in popularity thanks to its Government.
Last week saw the AUD plunging way below its 200-day simple moving average. The price has already gone to 0.7162 against the greenback after breaking several levels of SMA last week. Given that the position has a psychological hue to it, any bearish sentiment is likely to bring the currency to 0.7000. Unfortunately, the MACD and the RSI have signalled a bearish trend. However, given the inflation data, a better rate hike decision could rejuvenate the bullish sentiment for the AUD. The RBA meeting in May might offer some turntables with the rate hikes.
The Consumer Price Index is reportedly marching towards a 4.6% year-over-year increase from the 3.6% recorded in the fourth quarter of 2021.
The Kiwi dollar also fell promptly following the Aussies. The NZD could not hold steady despite the recent RBNZ rate hikes. The drop in metal prices seems to be why the Kiwis had to take this fall in the market. At this time of dip, browse forex brokers New Zealand platforms & pick the needed one. The USD’s strengthening course, combined with the Chinese lockdowns, has reportedly cut the demand for this currency. However, it is not the only currency to take the blow, as the Asia-Pacific market felt the impact against the USD.
Last week, the Japanese Yen got attention as it marched down to its lowest position against the greenback since 2002. Nevertheless, the currency made the headlines this week for a different reason: the April policy decision from the Bank of Japan. Although there would be no change in the benchmark rates, the BOJ will likely address the inflation targets. The currency already held on to the downside for seven consecutive weeks even as the bond purchase increased. Despite being on the negative side, the JPY could enjoy short-term support from the traders after the BOJ report.