(Asian Session) – Dollar bulls in charge on improved US economic outlook; aussie down after RBA policy meeting

(Asian Session) – Dollar bulls in charge on improved US economic outlook; aussie down after RBA policy meeting

(Asian Session) – Dollar bulls in charge on improved US economic outlook; aussie down after RBA policy meeting

Dollar bulls On Tuesday, rising economic prospects in the US kicked the dollar higher to a 1 ½-month high against its major rivals during

Dollar bulls On Tuesday, rising economic prospects in the US kicked the dollar higher to a 1 ½-month high against its major rivals during Asian trading, while a steady monetary policy and an unchanged economic outlook as indicated overnight by RBA policymakers sent the aussie down to a two-month low.

The spot dollar index stretched its uptrend during the Asian session, reaching a fresh 1 ½-month high of 93.92 as confidence in the US economic environment was enhanced after the release of upbeat manufacturing PMI readings on Monday and the Fed retained its hawkish stance on monetary policy. Additional support for the greenback was also found as the US 10-year Treasury yields peaked at a three-month high of 2.371 percent overnight, whereas geopolitical tensions did not escalate despite Trump refusing to start a discussion with North Korea on nuclear issues for the second time.

Dollar bulls

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Dollar/yen rose by 0.20% on the day to 112.96 ahead of the Japanese snap elections later in the month. Meanwhile, the leader of the newly launched Party of Hope and Tokyo’s governor, Yuriko Koike, showed reluctance to join the snap elections scheduled for October 22.

Gold stood flat at a two-week low of $1,270 per ounce.

The euro extended losses during the session, breaking marginally the $1.17-key level at $1.1695 as political uncertainties in Spain and Germany were on the rise after a violent independent vote in Spain on Sunday and inconclusive federal elections in Germany on September 24. Investors will now focus on the ECB meeting minutes published on Thursday for any clues on monetary policy moving forward.

The pound posted losses versus the greenback, edging down to $1.3262, weighed by risks revolving Brexit and economic conditions in the nation.

In the first hours of Asian trading, the RBA decided to keep interest rates on hold at a record low of 1.5%. Moreover, the monetary statement did not defer much compared to the one released in September as policymakers reiterated their concerns on a stronger currency, subdued inflation, and wage growth, whilst they also stayed cautious on household debt levels. A few hours earlier, August’s housing data out of Australia came in lower than expected, adding to losses for the aussie. Building approvals grew by 0.4% m/m compared to an upwardly revised contraction of 1.2% seen in the previous month, missing expectations of a 1.1% growth. Private house approvals declined by 0.6% m/m after rising by 1.0% (revised upwards from 0.0%).

The aussie tumbled to a two-month low of $0.7784 but it managed to climb to $0.7810 before Asian markets close for the day.

The kiwi retreated by 0.35% amid political uncertainty in New Zealand while businesses were more concerned about the country’s economic outlook in the next six months, driving the NZIER business confidence index to 5% in the third quarter from the 18% posted in the previous quarter.

In energy markets, oil was trading flat near yesterday’s two-week lows. WTI crude stood around $50.40 per barrel and Brent was hovering around $55.88.

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What is ‘Currency’

A few currencies, like cryptocurrencies, Bitcoin, Dogecoin and other online currencies and branded currencies are not tied to any usa. Branded currencies, like airline and credit card points, or in-recreation credit are valued on the subject of the price of the products or offerings they’re tied to. Manipulate over virtual currencies is totally decentralized, and the exchange price of a virtual foreign money can vary extensively in a quick time frame.

Nearby currencies are currencies intended for exchange over a small location and aren’t nationally subsidized. There are a wide variety of nearby currencies in the u.S.A., which itself has records of nearby currencies earlier than the status quo of the kingdom and countrywide banks. Other instances in which neighborhood currencies had been used include a kind of quasi-local forex within the form of neighborhood authorities ious which have been used as foreign money.

In almost all instances, the valuable financial institution of a rustic has the only right to problem cash for the stream. Along with a prime unit of foreign money, those banks problem fractional gadgets, usually inside the shape of cash. These normally display up as 1/100th, and 1/4th, but can at instances be as small as 1/one thousandth of the main unit of foreign money.

Investors regularly change forex at the forex marketplace, that’s one of the maximum closely traded markets in the global. An trade price is a charge at which two currencies may be exchanged in opposition to every other. These quotes may be ‘floating’ or ‘constant’; floating being that the fee of the currency changes in terms of foreign exchange marketplace mechanisms, constant currency is presently tied to another forex like gold or a currency basket.


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Richard Dambrosi (JADTECNIC) Has Been Sharing FOREX INVESTORS ANALYSIS FORECAST since 2011. Editors and Founder of InvestorsBuz.com, has a passion for Forex Social Sharing analysis and Market Trends Such as Self Driving Cars, Electric Cars, Medical Marijuana, 3d printing and Cloud computing, Refers to Readers as BUZ INVESTORS.

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