Fed shifts weigh on USD
The US dollar was weaker again overnight, with the benchmark USD index falling to two-week lows, as a new appointee to the US Federal Reserve caused markets to speculate the US central bank might be more willing to cut interest rates.
Stephen Miran, a close Trump ally, was appointed to the temporarily vacant seat left by Adriana Kugler. Financial markets are on tenterhooks after President Trump said he might announce a new Fed chair by the end of this week.
Across markets, other central banks moved to lower rates, with cuts from the Bank of England and the Banco de Mexico overnight.
AUSD/USD eyes breakout as trade gap widens
Australia’s trade surplus jumped to AUD 5.37 billion in June, up from AUD 1.60 billion in May and beating forecasts.
The boost came from a 6% rise in exports, driven by strong demand for non-monetary gold amid global uncertainty. Imports, meanwhile, fell 3.1%, mostly due to lower capital goods purchases.
AUD/USD has climbed steadily over the past five sessions and is now testing the 21-day moving average at 0.6507.
If momentum holds, the next target is the 0.6600 mark — a key psychological level.
Trump eyes early sit-down with Putin, USD/SGD hovers near decade low
US President Donald Trump is planning to meet Russian President Vladimir Putin as soon as next week, according to The New York Times. Trump said the earlier meeting between US Ambassador Witkoff and Putin on Wednesday was “highly productive.”
With tensions and headlines heating up, expect August to bring more market swings.
USD/SGD is holding just above key support at 1.2854, near its 21-day moving average. Resistance looms at 1.2871, the 50-day EMA.
The pair is currently trading about 1% above its decade low of 1.2698, a level worth watching.
USD extends losses
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 4 – 9 August
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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.
