🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Forex - Aussie Posts Mild Gains In Asia After Central Bank Holds Steady

Published 11/06/2017, 10:46 PM
© Reuters.  Aussie gains in Asia
GBP/USD
-
USD/JPY
-
AUD/USD
-
DX
-

Investing.com - The Aussie posted a mild rebound as the central bank held rates steady and pointed to wages and house prices as areas of focus as investors look ahead to remarks fby President Donald Trump in South Korea.

The Reserve Bank of Australia released its latest interest rate decision and held its benchmark cash rate at 1.50% as expected, signaling it is watching the housing market closely and that a higher Australian dollar is restraining price pressures.

Ahead, China may report FX reserves for October with the forecast at $3.107 trillion.

USD/JPY changed hands at 113.87, up 0.15%, while AUD/USD traded at 0.7694, up 0.03%. GBP/USD rose 0.04% to 1.3176. Earlier in Japan, average cash earnings rose 0.9%, compared to a 0.6% gain expected for September.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.02% to 94.64.

Overnight, the dollar turned negative against a basket of major currencies as rising political turmoil in the Middle East fuelled safe haven demand while news that New York Federal Reserve President William Dudley was retiring early weighed on sentiment.

The dollar gave up its gains against safe-haven currencies such as the yen and Swiss franc amid political uncertainty in the Middle East after Saudi Crown Prince Mohammed bin Salman led an anti-corruption drive which resulted in series of arrests of prominent Saudi Arabians.

Also adding to dollar weakness was uncertainty over the leadership of the Federal Reserve after the Federal Reserve Bank of New York confirmed that William Dudley was preparing to retire earlier than planned in mid-2018 rather than when his term ends in Jan. 19.

The fall in the greenback, however, may be limited as data showed traders trimmed their bearish bets on the dollar last week.

The value of the dollar's net short position, derived from net positions of International Monetary Market speculators in the yen, euro, British pound, Swiss franc and Canadian and Australian dollars, was $3.37 billion, in the week to Oct. 31, compared to a net short position of $8.02 billion in the previous week.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.