Yen, US Dollar Rise As RBA Governor Lowe Spooks The Markets

Ominous comments from RBA Governor Philip Lowe sent foreign exchange markets scrambling in Asia Pacific trade. The Australian Dollar led sentiment-linked commodity bloc currencies lower while the anti-risk Japanese Yen outperformed. The similarly-minded US Dollar also rose.

Mr Lowe backtracked on the heretofore ubiquitous refrain that the next move for interest rates is likely to be up, the outlook is now “more finely balanced”. That is an eye-catching acknowledgement of the downshift in global growth prospects, particularly after yesterday’s seemingly rosy RBA policy statement.

YEN, US DOLLAR AIM HIGHER IN RISK-OFF TRADE

Looking ahead, the downbeat mood seems to be spilling over into broader financial markets. Futures tracking the bellwether FTSE 100 and S&P 500 equity benchmarks are pointing decidedly lower, hinting the risk-off mood is likely to remain after markets in London and New York come online.

That hints APAC-session trading patterns have scope for follow-through. A lackluster offering of scheduled event risk seems to offer few releases potent enough to derail established momentum, clearing the way for JPY and USD to continue building broadly higher.

ASIA PACIFIC TRADING SESSION

Asia pacific trade economic calendar

 

EUROPEAN TRADING SESSION

Europe trade economic calendar

 

** All times listed in GMT. See the full economic calendar here.

Disclosure: Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment ...

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