Should We Be Wary of the Rise in Oceania Currencies Amid Falling Oil Prices?
22.08.2022
- Chicago Fed National Activity Index
- No major economic indicators are scheduled to be released
Last weekend, the U.S. dollar remained strong, with the Dollar Index trading at elevated levels. The EUR/USD pair fell by approximately 60 pips from 1.0094 to 1.0033. During today’s Asian trading session, it hit a new low, dropping to 1.0023. We will closely monitor price movements heading into the European session to see if the decline continues and breaks the year’s low of 0.9952.
Among European currencies, the pound has been particularly weak, with GBP/AUD falling approximately 140 pips from 1.7289 to 1.7143. This decline was accelerated by the strength of Oceania currencies, which has been moving in the opposite direction to the drop in crude oil prices. The pair has continued to decline during today’s Asian trading session, and GBP/AUD is currently trading around 1.7150.If the pair continues to decline, we would first set a target at 1.7115, the recent low on the 4-hour chart.
Aside from the Chicago Fed National Activity Index, scheduled for release at 9:30 p.m., there are no major economic indicators or key speeches scheduled for today.There are no major central bank policy rate announcements scheduled for this week; the only notable event is the Jackson Hole Symposium in the U.S. this weekend. Federal Reserve Chair Powell is scheduled to speak on Friday, the 26th, at 11:00 PM. We will be watching closely to see what stance he takes on quantitative tightening (QT) during his Friday speech.
Author: Keisuke Sakurai
