Video: Dollar and Aussie Dollar Rally on Monetary Policy Updates
05 Aug 2015 01:55, GMTTalking Points:
• Another hawkish voice was sounded from the Fed as Dennis Lockhart suggested a September hike is the base case
• Simply holding back on rates and a bearish view of the currency, the RBA inadvertently rallied the AUD
• Risk trends are still a coiled spring which represents the greatest risk and greatest opportunity
Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!
Speculation surrounding monetary policy bearings continues to generate a disproportionate amount of volatility in the FX market. There are bigger and more ominous events scheduled for later this week, but the docket this past 24 hours offered a surprising level of activity. For the Greenback, Atlanta Fed President Dennis Lockhart added a more distinct tone to the hawkish lean the FOMC has otherwise insinuated at previous policy meetings. His seeming belief that a September hike is a base case roused the USDollar but didn't supply enough buoyancy to clear three-month range resistance. Meanwhile, the RBA's neutral view on policy and the currency translated into a distinct rally for the Aussie Dollar. Will this last? We check in on monetary policy as a driver as well as looming risk trends in today's Trading Video.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.