TALKING POINTS – US DOLLAR, FOMC, AUSSIE DOLLAR, RBA, YEN
- US Dollar may return to the offensive on hawkish FOMC minutes
- Yen down as APAC stocks rise, NZ Dollar up on retail sales data
- Australian Dollar lower as yields, demand drop at bond auction
An empty economic calendar in European trading hours is likely to see traders looking ahead to the release of minutes form Augusts’ FOMC meeting for direction cues. A hawkish tone echoing the policy statement released following the conclave may boost the US Dollar.
The greenback has suffered four consecutive days of losses as firming risk appetite drives the unwinding of gains scored against a backdrop of market turmoil. News-flow reminding markets of the Fed’s policy tightening lead relative to its G10 counterparts might mark a break of that dynamic.
The New Zealand Dollar outperformed in Asia Pacific trade following an impressive retail sales report. Receipts grew 1.1 percent, topping forecasts calling for a far more modest 0.3 percent gain. Meanwhile, the Japanese Yen retreated as most regional stocks rose, sapping demand for the anti-risk currency
The Australian Dollar also fell as yields ticked down at a government bond sale. Rates on paper maturing in 2022 were at 2.142 percent, down from 2.184 percent when analogous debt was sold in July. That this happened even as the bid-to-cover ratio ticked lower hints at ebbing demand for AUD-denominated assets.
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ASIA PACIFIC TRADING SESSION
EUROPEAN TRADING SESSION
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** All times listed in GMT. See the full economic calendar here.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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