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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • We are heading into a Tuesday lull which precedes Wednesday's FOMC focus. Will the absence of distractions allow for risk trends to gain momentum or perhaps will Fed anticipation temper the $SPX tumble? My take: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/21/Fed-Taper-Focus-May-Help-Stall-the-SP-500s-Collapse-Dollars-Charge.html https://t.co/T4m60xEfk6
  • CTV projects Trudeau wins his third term as Canada's Prime Minister - BBG
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/KY6MiOC9Y6
  • US House Speaker Pelosi says top-line spending number may change but hopes for $3.5 trillion in spending bill - BBG
  • RBA Minutes: - Board committed to providing high level of monetary support - Q3 GDP expected to decline materially - Central scenario is rates on hold until 2024 - BBG $AUDUSD
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-21
  • New Zealand reports 14 new local Covid cases - BBG
  • I had a chance to talk with @tastytradeRyan and @victorJ0NES about Evergrande and its impact on US markets — always great talking with these two guys on Mondays. https://t.co/vddTknnPWC
  • RT @cheddar: Stocks dropped the most since May on Monday, sending shockwaves through Wall Street. @CVecchioFX explains the global impact of…
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/EegiwWMe9V
US Dollar Higher as FOMC Minutes Put QE Taper into View. Onward and Upward?

US Dollar Higher as FOMC Minutes Put QE Taper into View. Onward and Upward?

Daniel McCarthy,

FOMC MINUTES, US DOLLAR (DXY), AUSTRALIA JOBS, AUD/USD – Talking Points

  • The US Dollar eventually found friends after the FOMC minutes
  • Asia Pacific equities followed Wall street lower as risks loom
  • Australian unemployment falls, but how much further will AUD/USD drop?

Minutes from July’s FOMC meeting were interpreted as hawkish, pushing the S&P 500, Nasdaq and Dow Jones lower on their close. APAC equities followed their lead, with all the top bourses finishing the Asian session lower. The support for the US Dollar was largely seen in the commodity complex in North American time but moved across into other currency pairs in Asia as AUD, CAD, CHF, EUR, GBP and JPY all sank against the Greenback. This illustrates the moves in markets were not a risk event as such, but rather a pure USD reaction to the FOMC minutes. The market seemed to take the document at face value, despite the fact that the meeting was several weeks before the Delta variant was as prevalent as it is now.

The Australian Dollar initially tried to run higher after the domestic unemployment rate came in at 4.6% against 4.9% prior and 5% expected. A stellar result, but the market looked through the stale data from July and re-focused on Delta variant cases and the length of lockdowns. Combined with USD strengthening, the AUD/USD made a new low for 2021 that may open up further moves lower.

The upcoming Jackson Hole symposium (26-28 August) will be a focus for markets going forward and we should expect several Fed talkers between now and then to ensure the markets are well prepared. In the near term, we have US jobless claims and an outlier here could provide some volatility.

US Dollar Technical Analysis

The US Dollar Index (DXY) may have found a base and is building for an extended move higher in the weeks and months ahead. Since finding support in late May, it has maintained a strong uptrend and is now testing the high of the year seen in late March.

US DOLLAR INDEX (DXY) – Daily Chart

US Dollar Higher as FOMC Minutes Put QE Taper into View. Onward and Upward?

Chart Created in TradingView

--- Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @DanMcCarthyFX on Twitter

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

DISCLOSURES