FX Handover: FOMC Dominates Markets During A Lively Asia Session


  • The dovish FOMC meeting continued to weigh on the US dollar throughout Asia, seeing USD/JPY drop to its lowest level since the January flash crash.
  • RBA’s Lowe hammered home the likelihood of another cut, saying it’s unrealistic to think 25bps cut can alter growth, it’s not unrealistic to expect a further reduction in cash rate and the possibility of a lower cash rate remain on the table.
  • Australian yields hit fresh record lows with the AU2 and 10yr yields falling to 0.93% and 1.29% respectively. The ASX200 pushed to a fresh post-GFC high and hones-in on the all-time high.
  • AUDNZD fell to its lowest level since early April. Better than expected GDP data from NZD and expectation for RBNZ to hold next week have weighed on the cross.
  • Asian caught the tailwind from the FOMC meeting, trading mostly higher led by Singapore and Hong Kong.
  • Gold is on track for tis most bullish week in 3 years, after spiking higher to $1392, its highest level in five years.
  • Trump is to meet with Putin at the G20 meeting next week.


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