Greenback nears one‑month highs
The US dollar was mostly stronger overnight with the USD index near one‑month highs even as US bond yields tumbled.
The benchmark US ten‑year bond yield neared 4.00% – a sharp fall from the 4.30% seen earlier in February – as worries about slow jobs growth in the US ease fears of potential Federal Reserve rate hikes.
The biggest losses overnight were in the British pound, with GBP/USD down 0.6% ahead of a key by‑election that might be negative for the ruling Labour Party.
The GBP was lower in most markets, with AUD/GBP rising to the highest level in almost two years.
Aussie, kiwi lower
The Australian and New Zealand dollars were also weaker, with both currencies easing after recent gains.
The AUD/USD has fallen into a short‑term trading range with support seen at 0.7000 and resistance seen just below 0.7150.
This week’s higher inflation reading suggests the Aussie’s upward momentum remains in place, but the Reserve Bank of Australia seems unlikely to hike rates at the next meeting on 17 March.
The kiwi, on the other hand, has been lower since last week’s Reserve Bank of New Zealand decision indicated that further rate cuts remain possible.
With momentum building to the downside, key support is seen at 0.5920, with a break of this level setting up a move to 0.5860.
Chinese yuan leads Asian FX higher
In Asia, the greenback was mostly lower, led by a surging Chinese yuan.
USD/CNH fell 0.1% on Thursday and is now down 0.7% for the week so far, with the pair falling to the lowest level since March 2023.
USD/SGD was mostly steady.
USD/JPY fell 0.1%.
USD at one-month highs
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 23 — 28 Feb
All times AEDT
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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.
