Dollar Falls, Aussie Gains on Trump’s China Comment
The greenback weakened while Australia’s dollar surged to its highest in a month after US President Donald Trump told Fox News he would rather not have to impose tariffs on China. The yen gained following the Bank of Japan’s interest-rate hike.
The Bloomberg Dollar Spot Index fell 0.3%, while the yield on 10-year Treasuries slipped two basis points to 4.62%
AUD/USD surged 0.6% to 0.6321, due to Australia’s status as a proxy for Chinese sentiment. NZD/USD climbed 0.6% to 0.5709
Both fx pairs jumped to the highest since Dec. 18
“Trump’s comment is like rocket fuel — it’s good news for assets in this part of the world,” Mingze Wu, currency trader at Stonex Financial, said. “We are under-appreciating the risk of Trump being unpredictable”.
USD/JPY gains 0.3% to 155.63 after the BOJ rates rates to the highest since 2008, as expected
“The BOJ overall, for me at least, is casting itself on the slightly more hawkish side with the CPI revisions alongside ongoing signaling that upside risks remain and if forecasts are realized more adjustment can be expected,” said Richard Franulovich, head of FX strategy at Westpac Banking Corp. in Sydney. It “remains to be seen if Ueda delivers the same messaging”
Traders are now watching Governor Kazuo Ueda’s press conference later in the day for further policy clues
EUR/USD rises 0.3% to 1.0446
GBP/USD gains 0.3% at 1.2391
Source : Bloomberg
