USD steady, GBP hit overnight
The US dollar gave up its early gains overnight, with the world’s most‑traded currency unable to benefit from a rebound in US markets.
The US S&P 500 bounced from two‑month lows, while the tech‑focused Nasdaq climbed from three‑month lows as the three‑week sell‑off in tech stocks paused overnight.
Across markets, the British pound was hit hardest after the UK unemployment rate climbed to 5.2% — the highest since 2021. The AUD/GBP neared 15‑month highs.
The euro was mostly steady after a five‑day losing streak in EUR/USD.
The USD/JPY remained near four‑month lows, extending the Japanese yen’s recent winning streak following the LDP’s election victory on 9 February. The JPY has been stronger in most markets.
NZD gains ahead of RBNZ today
The NZD/USD was higher, up 0.3% yesterday as it climbed back towards eight‑month highs ahead of today’s Reserve Bank of New Zealand decision at 2:00pm NZDT (12:00pm AEDT).
The first meeting since November — and the first under new governor Anna Breman– will be closely watched for any new information around policy into 2026.
Financial markets see virtually no chance of a move today, with one rate hike fully priced in by the end of the year.
Aussie lifted after RBA minutes
Australian interest rate policy will also be in focus after yesterday’s Reserve Bank of Australia minutes signalled the central bank is willing to hike rates further.
The RBA said it would do “what is necessary” to contain inflation after a spike in Australian inflation pushed the headline CPI rate from 1.9% in June to 3.8% in December.
The AUD/USD climbed 0.2% on the news and remains less than 1% away from three‑year highs.
Today, wage price data for the December quarter is due at 11:30am AEDT. Annual wage growth is forecast to remain steady at 3.4% — any higher reading may boost the AUD.
Aussie, kiwi – the pause that refreshes?
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 16 – 21 Feb
All times are in EST
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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.
