USD higher despite Fed’s move
It was a classic case of “buy the rumour, sell the fact” overnight, as key markets turned lower and the US dollar surged despite the Federal Reserve cutting interest rates.
The Fed delivered a widely expected 25 basis point cut, bringing the target range to 4.00%–4.25%.
The Fed’s updated dot plots signal two more 25bp cuts by year-end, but the US dollar jumped sharply after the announcement.
The AUD/USD led losses, falling 0.5% as the Aussie reversed from ten-month highs.
NZD/USD also retreated, down 0.4% from recent highs.
Looking ahead, a big day looms with NZ GDP, Australian jobs data, and the Bank of England decision all due.
USD/JPY jumps from one-month low as Fed fills final seats
The Fed’s decision came alongside key board changes. Stephen Miran, Chair of the White House’s Council of Economic Advisers, was confirmed to the Fed board, replacing Governor Kugler through January 2026.
Meanwhile, Governor Lisa Cook was cleared to remain during her legal challenge, following a US Court of Appeals ruling.
Miran had pushed for a deeper 0.5% cut, hinting at more political tension ahead.
The dollar initially dipped to a one-month low against the yen before rebounding sharply. Next resistance levels sit at the 50-day EMA of 147.21, followed by the 21-day EMA of 147.37.
The Bank of Japan meets tomorrow.
USD/CNH also reversed higher, bouncing from 11-month lows.
USD/SGD near two-month low as Singapore exports dive
Earlier, Singapore’s non-oil exports plunged 11.3% in August, the steepest drop since March 2024 and the fourth contraction this year.
That’s a sharp reversal from July’s 4.7% decline and well below expectations for a modest rebound.
Both electronics and non-electronics shipments slumped. Electronics fell 6.5% after a brief July bounce, while non-electronics sank 13%.
EnterpriseSG said it’s monitoring the impact of US tariffs and may revise its 2025 forecast if conditions worsen.
USD/SGD hovered near a two-month low, just 0.5% above July’s 1.2698 trough, before rebounding post-Fed. The pair gained 0.2% for the day.
Notably, RSI has entered oversold territory. Resistance levels sit at the 21-day EMA of 1.2827 and the 50-day EMA of 1.2846.
USD in post-Fed comeback
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 15 – 19 September
All times AEST
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
