Forex - AUD/USD, USD/JPY Flows: Post-Powell tone likely to extend, 0.70 and 108 in sight


 00:38 (GMT) 11 Jul

  [Forex Flows]

Sample Premium Content
AUD/USD, USD/JPY Flows: Post-Powell tone likely to extend, 0.70 and 108 in sight (0101-MKXC-C01)

Asia starting to react to Powell's testimony, which came across as dovish and indicative of an insurance cut of 25bps in July. USTs are bid, with USD/JPY tracking it lower while E-minis steps up. Powell will testify before the Senate Banking Committee later today. US CPI will be a focus as well, but both are unlikely to disrupt the market Fed easing views. USD is likely to stay soft though further notable weakness might require significant weakness in data to drive up market easing bets. USD/JPY extends the post-Powell weakness into the Asian session, broke below the 200hour ma and should now have its sight set on the round 108 figure, but positive equity tone should limit further downside beyond that.
AUD/USD currently fairly steady, capped by the 100hour ma, following strong gains on Thursday amid supportive equity markets and commodities prices. However, the anticipated Fed July cut was also seen as putting a little bit more pressure on the RBA to follow with another cut, though will unlikely be followed in August. Even so, given the very short positioning in AUD and without any major disruption of the current market theme, AUD/USD should not have much difficulty retesting the 0.70 mark.


CurrenciesCountriesMarket Bulletins

Latest Currency Analysis

Available to subscribers only
Order Now