![]() “It’s too early to conclude Fed pricing will not rise again, given officials emphasize front loading of the cycle, so that a final burst of USD strength is possible over the next month or two,” Westpac strategist Imre Speizer wrote in a client note. Westpac predicts the kiwi could top $0.69 by year-end, on a rally fueled by both a climb-down in Fed tightening expectations and optimism about a China reopening. The Antipodean currencies rallied 0.83% and 0.91% respectively on Monday. The risk-sensitive Aussie dollar sank 0.41% to $0.70815, while New Zealand’s kiwi slid 0.46% to $0.6438, a day before the Reserve Bank of New Zealand is widely expected to raise the key rate by half a point. dollar is carving out a peak and the commodity currencies like the Aussie are carving out a bottom, but it’s going to be bumpy.” This advertisement has not loaded yet, but your article continues below. “If the data is good, that should continue the trend of an easing dollar as the global economy recovers from various shocks,” said Joseph Capurso, a strategist at Commonwealth Bank of Australia. ![]() The release of global manufacturing PMIs over the course of Tuesday will be another key focus for currency traders. President Joe Biden’s comments this week towards a possible easing of the trade war with China have lifted sentiment at the dollar’s expense. Meanwhile, positive signs for the global economy such as Shanghai’s expected emergence from weeks of crippling COVID-19 lockdowns and U.S. currency has been falling broadly alongside a decline in Treasury yields from multi-year peaks, with aggressive easing by the Federal Reserve already priced in. Traders pointed to an after-the-bell profit warning from Snapchat owner Snap, which saw the stock tumble 28% in extended trading.ĭespite the respite on Tuesday, the U.S. stock futures indicated a 0.92% slide for the S&P 500 and 1.53% tumble for the Nasdaq at the restart, tarnishing a strong session on Monday that saw the indexes climb 1.86% and 1.68% respectively. Activate your Online Access Now Article content ![]() If you are a Home delivery print subscriber, unlimited online access is included in your subscription.
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