Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Currencies  >  Australian Dollar / Japanese Yen (AUD/JPY)    AUDJPY   

AUSTRALIAN DOLLAR / JAPANESE YEN (AUD/JP
My previous session
Most popular
SummaryQuotesChartsNews 
News SummaryAll newsTweets

CURRENCIES : Dollar Breaks 5-day Losing Run, But Analysts Remain Downbeat

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/03/2018 | 01:09pm CEST

By Sara Sjolin, MarketWatch

ING stays bearish on the buck

The dollar halted its recent selloff on Wednesday, with a key dollar index breaking a five-session losing streak as traders waited for the latest update from the Federal Reserve.

What are currencies doing?

The ICE U.S. Dollar Index rose 0.2% to 92.094, rebounding from a more-than three-month low reached on Tuesday .

The euro fell to $1.2014 from $1.2061 late Tuesday in New York, when the shared currency traded around its highest dollar level since January 2015.

The pound dropped to $1.3562 from $1.3589 on Tuesday, yanked lower by a disappointing reading on the U.K. construction sector.

The yen was largely flat against the dollar, with the greenback buying Yen112.26 compared with Yen112.29 on Tuesday.

What is driving the markets?

Analysts said the dollar strength on Wednesday was more a pause from the selloff than a turnaround for the U.S. currency.

ING pointed to a range of factors to be bearish on the dollar, including uncertainty over how the Republican tax bill will impact the economy, an unsettled political backdrop ahead of the November midterms and "better goldilocks investment opportunities outside of the U.S."

"The latter two factors in particular is seeing the USD lose its role as an investment currency -- and trading under new rules where an environment of rising U.S. rates no longer guarantees dollar strength," said Viraj Patel, foreign exchange strategist at ING, in a Wednesday note.

Traders were also looking ahead to the release of the minutes from the Dec. 12-13 Federal Open Market Committee meeting due at 2 p.m. Eastern Time. Investors are looking for hints on how many times the central bank will hike interest rates in 2018. According to the CME Group's data, the market is currently pricing in the next rate rise in March.

What are strategists saying?

"AUD/JPY is a good gauge of market sentiment and is threatening a correction. Could this be a harbinger for a near term shift in sentiment again? It is too early to say for sure, but as the U.S. dollar sees a mild rebound this morning these moves have tended to be seen as another opportunity to trade the trend recently," said Richard Perry, market analyst at Hantec Markets, in a note.

The Australian dollar-yen pair traded at 87.936 on Wednesday, close to its highest level since early November.

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AUSTRALIAN DOLLAR / JAPANE
03/23CURRENCIES : Dollar Hits Lowest Yen Level Since 2016 Election As Trade-war Woes ..
DJ
01/03CURRENCIES : Dollar Breaks 5-day Losing Run, But Analysts Remain Downbeat
DJ
2016BOJ PREVIEW : ’Comprehensive Assessment’ to Set the Tone
FX
2015AUD/JPY Rally Approaching Initial Resistance Hurdle
FX
2015AUD/JPY Flirting with Pivotal Support
FX
2015AUDJPY Rebound Off Slope Support Eyes 86.00 Resistance Ahead of NFP
FX
2015AUDJPY Approaching Monthly Open- Range Break to Determine Scalp Bias
FX
2015AUDJPY Rebound Faces First Hurdle- Long Scalp Favored Above 91.24
FX
2015AUDJPY Breakout Scalps Target 200 DMA Ahead of BoJ, China PMI
FX
2015AUDJPY Snaps 9 Day Losing Streak- Long Scalps Favored Above 91.20
FX
More news
Chart AUSTRALIAN DOLLAR / JAPANESE YEN (AUD/JPY)
Duration : Period :
Australian Dollar / Japanese Yen (AUD/JPY) Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AUSTRALIAN DOLLAR / JAPANE
Short TermMid-TermLong Term
TrendsBearishNeutralBearish