Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Australian, NZ Dollars Drop on Firming Fed Outlook - Will it Last?

Australian, NZ Dollars Drop on Firming Fed Outlook - Will it Last?

Ilya Spivak,

Talking Points:

  • Euro leads regional FX higher amid French election optimism
  • Improving market sentiment punishing anti-risk Japanese Yen
  • Aussie, Kiwi Dollars suffer as Fed rate hike outlook improves

Optimism following the outcome of first-round voting in the French presidential election continues to define currency market price action. The Euro is leading most regional majors upward as updated polls suggest centrist Emmanuel Macron will beat eurosceptic Marine Le Pen by a margin of approximately 60 to 40 percent in the second round on May 7.

The broader markets’ mood is consequently brighter, with the anti-risk Japanese Yen on the defensive. Meanwhile, US Treasury bond yields are marching higher to suggest that the apparent removal of a major threat to market stability will allow for steeper Fed tightening. The hawkish drift in US policy bets has duly hurt the acutely rates-sensitive Australian and New Zealand Dollars.

S&P 500 futures are pointing higher, hinting that more of the same is likely as Wall Street comes online. Soft US economic data may sour the mood to some extent however. Weaker readings on new home sales and consumer confidence are expected. News-flow out of the world’s largest economy has disappointed recently, opening the door for still weaker results that may cool Fed rate hike bets.

Have a question about the currency markets? Join a Trading Q&A webinar and ask it live!

Asia Session

European Session

** All times listed in GMT. See the full DailyFX economic calendar here.

--- Written by Ilya Spivak, Currency Strategist for

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.