USD lower on peace deal hopes
The US dollar was mostly stronger on Monday as markets mainly gained on renewed optimism surrounding geopolitical negotiations
Market sentiment improved after reports that recent US-Iran discussions made positive progress, reinforcing hopes that tensions in the Middle East could continue to ease. Oil fell, with Brent crude down 8.7% yesterday.
The US dollar gained. The British pound and kiwi were the biggest losers, with GBP/USD and NZD/USD both falling 0.3%.
Aussie eases ahead of RBA Bullock speech
The Australian dollar bucked the trend and was stronger ahead of upcoming comments from Reserve Bank of Australia Governor Michele Bullock.
AUD/USD gained 0.2%.
Bullock speaks to the Anika Foundation at 1.05pm today. FX markets are looking for fresh guidance on the outlook for interest rates and inflation following the RBA decision last month to keep rates unchanged.
However, markets are concerned the RBA might look to hike rates again when it meets in two weeks’ time. Financial markets see a 35% chance of a hike (Source: Bloomberg).
The Aussie remains in a moderate uptrend, with short-term support at 0.6960 and topside resistance at 0.7025.
SGD stronger as MAS tightens
The Singapore dollar strengthened during the past 24 hours after the Monetary Authority of Singapore tightened monetary policy for a second consecutive meeting.
The MAS announced a very slight increase in the rate of appreciation of its Singapore dollar nominal effective exchange rate policy band, citing persistent inflation risks linked to elevated energy costs and ongoing uncertainty surrounding the Middle East.
The move surprised most economists, who had expected policy settings to remain unchanged. Investors interpreted the decision as a sign that policymakers remain committed to containing imported inflation while signalling confidence in the resilience of Singapore’s economy.
The stronger policy stance supported the Singapore dollar against the US dollar and regional currencies.
Aussie back near 0.7000 ahead of Bullock speech
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 27 – 31 July
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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.
