USD slips from ten-day highs
The US dollar was mostly weaker overnight as markets looked ahead to tonight’s US inflation reading.
The US dollar eased from ten-day highs.
The Aussie and kiwi outperformed in line with commodity currencies, helped by the spike in oil prices. The Canadian dollar slipped, however, after a weaker retail sales number.
The euro was moderately stronger, while the British pound slipped.
In Asia, USD/JPY was higher, up 0.4%.
USD/CNH was steady, while USD/SGD remains seemingly capped as it pushes up against five-month highs at 1.3000.
CPI to be released despite shutdown
Looking ahead, all eyes are on the US CPI release and its implications for Fed policy, due at 11.30pm AEDT. A hotter-than-expected print could reignite US dollar strength and weigh on risk assets.
Annual headline inflation is forecast to rise from 2.9% in August to 3.1% in September.
Despite the ongoing government shutdown, the Bureau of Labor Statistics confirmed it will release September CPI data, although delayed.
The CPI number benefits from a loophole that requires it to be released to calculate cost-of-living adjustments for the US’s Social Security program.
Crude spike supports Aussie
The Australian dollar outperformed as crude oil jumped 5.4% yesterday in its second-biggest one-day gain for the year.
The gains followed news that US President Donald Trump would impose new tariffs on Russian oil firms.
In FX, AUD/USD led gains, up 0.4%, helped by the rise in oil and the recovery in gold prices after this week’s monster sell-off in precious metals.
Despite the gains, AUD/USD remains trapped in a short-term downtrend, with key moving averages pointing lower and the price capped by resistance at 0.6525.
Aussie benefits from oil spike
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 20 – 25 October
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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.
