Williams cools October hike expectations
The US dollar eased from 18-month highs after New York Federal Reserve President John Williams pushed back against expectations for an immediate rate hike.
Williams said one more interest rate increase “late this year” may be appropriate to help contain inflation, but indicated he does not currently expect the Federal Reserve to need further rate increases in 2027.
The comments prompted markets to reduce expectations for an October hike, with the probability falling to around 23%. An October move was already viewed as less likely ahead of next month’s US midterm elections.
The US dollar index retreated from 18-month highs following the comments.
Looking forward, tonight’s US CPI reading is key.
Aussie, kiwi rebound as US dollar eases
The weaker US dollar provided some relief for the Australian and NZ dollars.
AUD/USD gained 0.4% and returned towards key psychological resistance at 0.7000.
NZD/USD rebounded from its 2026 lows, gaining 0.5%.
US dollar mostly weaker across Asia
The US dollar was also mostly weaker across Asia, although some emerging APAC currencies remained under pressure.
USD/JPY fell 0.2%, while USD/SGD lost 0.1%.
USD/CNH was broadly unchanged.
The greenback has become increasingly stretched after gaining almost 5% since early September.
Tonight CPI key for USD
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 12 – 17 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.
