Aussie, kiwi hit by sell-off
The greenback continued its rapid rebound from the four-year lows seen last week as an ongoing sell-off in last year’s winners weighed on sentiment.
Overnight, technology stocks took further losses, with worries ahead of Amazon’s earnings dragging markets lower. The S&P 500 fell 1.2% and the Nasdaq lost 1.6%. Amazon dropped 7.2% in post‑market trading.
In other markets, silver extended its losses, falling 17% overnight, while bitcoin declined 14% to USD 63k — its lowest level since October 2024.
The Aussie was pressured by weakness across these markets, with AUD/USD down 0.9%.
NZD/USD lost 0.8%.
USD helped higher as Fed’s Cook urges patience
Fed Governor Lisa Cook said interest rates are now only “ever so mildly” restrictive, supporting a wait‑and‑see approach before considering further cuts.
Speaking at the Economic Club of Miami, she emphasized that the Fed had already pushed “a lot of easing into the pipeline at the end of last year.” With the labour market steady and inflation pressures shifting, Cook argued that this is the moment to pause and watch the data. She added that the recent price increases tied to tariffs should prove temporary, underscoring the need to return to a disinflationary path. Her remarks highlight a cautious stance that could dampen expectations for near‑term rate cuts.
USD/SGD has risen more than 1% from its January 28 low of 1.2586 and is now trading at a more than one‑week high.
Key resistance sits at the 50‑day EMA of 1.2826, followed by the 100‑day EMA of 1.2874.
Putin set for Beijing visit this year
Russian President Vladimir Putin has accepted Chinese President Xi Jinping’s invitation to visit Beijing in the first half of the year, following their video call on Wednesday.
The two leaders pledged to step up exchanges and cooperation to keep ties stable amid global turbulence, according to Xinhua. Their conversation came just before Xi spoke with U.S. President Trump the same day.
USD/CNH trades 0.2% above its recent low of 6.9290, last seen on February 4.
The next key resistance lies at the 21‑day EMA of 6.9583, followed by the 50‑day EMA of 6.9949.
Aussie, kiwi lead losses
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 3 – 7 Feb
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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.
