U.S. Dollar Weakens After Fed Rate Cut
October 30 2019 - 11:16PM
RTTF2
The U.S. dollar depreciated against its major counterparts in
the Asian session on Thursday, after the U.S. Federal Reserve cut
interest rates for the third time this year, but signaled it may
put further monetary policy easing on hold.
The Fed lowered the target range for the federal funds rate by
25 basis points to 1-1/2 to 1-3/4 percent.
But the Fed's accompanying statement removed a key line
indicating the central bank would continue to "act as appropriate
to sustain the expansion."
Rather, the Fed said it would continue to monitor the
implications of incoming information for the economic outlook as it
assesses the appropriate path of the target range for the federal
funds rate.
Investors await reports on weekly jobless claims and personal
income and spending due later in the day.
The Labor Department's closely watched monthly jobs report is
due out on Friday.
U.S. employment is expected to increase by 88,000 jobs in
October after an increase of 136,000 jobs in September. The
unemployment rate is seen rising to 3.6 percent from 3.5
percent.
The greenback fell to a 1-week low of 1.2934 against the pound,
reversing from a high of 1.2894 hit at 5:00 pm ET. The next likely
support for the greenback is seen around the 1.32 level.
Survey results from the market research group GfK showed that UK
consumer confidence deteriorated more than expected in October as
households became cautious over personal finances amid Brexit
uncertainty.
The consumer confidence index fell to -14 in October from -12 in
September. The reading was forecast to drop marginally to -13.
The greenback slipped to a 10-day low of 1.1171 against the
euro, compared to Wednesday's closing value of 1.1150. The
greenback is poised to challenge support around the 1.13 level.
The U.S. currency depreciated to 0.9866 against the Swiss franc,
its lowest since October 22. The greenback is seen finding support
around the 0.96 region.
The greenback weakened to a 6-day low of 108.59 against the yen
and held steady thereafter. At Wednesday's close, the pair was
worth 108.83.
The Bank of Japan maintained its policy rates but it signaled
further monetary easing going forward.
The central bank said short and long-term interest rates are
expected to remain at their current or lower levels as long as it
is necessary to achieve its price stability target.
The greenback depreciated to a 9-day low of 0.6433 against the
kiwi and more than a 3-month low of 0.6930 against the aussie, from
yesterday's closing values of 0.6388 and 0.6903, respectively. On
the downside, 0.66 and 0.71 are possibly seen as the next support
levels for the greenback against the kiwi and the aussie,
respectively.
The greenback edged lower to 1.3150 against the loonie, from a
high of 1.3173 seen at 8:30 pm ET. Next immediate support for the
greenback is seen around the 1.30 level.
Looking ahead, Eurozone consumer inflation for October, jobless
rate for September and GDP data for the third quarter are due in
the European session.
Canada GDP data for August, U.S. weekly jobless claims for the
week ended October 26, personal income and spending data for
September will be featured in the New York session.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Mar 2024 to Apr 2024
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Apr 2023 to Apr 2024