Dollar Higher Ahead Of Fed Minutes
May 22 2019 - 12:05AM
RTTF2
The U.S. dollar strengthened against its major counterparts in
the Asian session on Wednesday, along with treasury yields, as
investors awaited the Fed minutes from the recent meeting that
struck a neutral stance on interest rates.
The minutes from the latest Fed meeting are due out at 2:00 pm
ET.
In his press conference, Fed Chairman Powell remarked that the
recent shortfall in inflation may be transitory and the bank is
expected to keep its policy unchanged for the foreseeable
future.
The currency got further boost on easing trade tensions as the
Commerce Department temporarily eased trade restrictions on Chinese
tech giant Huawei and Google said it would continue to work with
Huawei over the next 90 days.
The greenback appreciated to 0.6494 against the kiwi, its
highest since October 22. Next key resistance for the greenback is
possibly seen around the 0.63 level.
Data from Statistics New Zealand showed that NZ retail sales
rose a seasonally adjusted 0.7 percent on quarter in the first
three months of 2019 - exceeding forecasts for a rise of 0.6
percent following the 1.7 percent jump in the three months
prior.
The total value of retail sales rose 0.2 percent on quarter.
The greenback edged up to 1.3417 against the loonie and 0.6871
against the aussie, from its early lows of 1.3395 and 0.6887,
respectively. On the upside, 1.36 and 0.67 are likely seen as the
next resistance levels for the greenback against the loonie and the
aussie, respectively.
The greenback rose to 1.0119 against the franc, from a low of
1.0102 hit at 5:30 pm ET. The greenback is seen finding resistance
around the 1.03 level.
The greenback climbed to 1.2663 against the pound, a level
unseen since January 4. The next key resistance for the greenback
is likely seen around the 1.24 level.
The greenback advanced to 1.1149 against the euro, after falling
to 1.1166 at 8:00 pm ET. If the greenback rises further, 1.10 is
possibly seen as its next resistance level.
On the flip side, the greenback pared gains to 110.37 against
the yen, from an early high of 110.63. The greenback is poised to
challenge support around the 109.00 area.
Bank of Japan board member Yutaka Harada said monetary easing
should be strengthened further without delay.
"If the economy deteriorates to the extent that achieving the 2
percent price stability target in the long term becomes difficult,
I view it as necessary to strengthen monetary easing without
delay," he told business leaders in Nagasaki.
Looking ahead, U.K. consumer and producer prices for April,
house price index for March and public finances for April are due
in the European session.
In the New York session, Canada retail sales for March and
Federal Reserve's minutes from the May meeting are scheduled for
release.
At 10:00 am ET, New York Fed President John Williams will speak
about US homeownership at the Federal Reserve Bank of New York.
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