Should We Be Wary of the Rise in Oceania Currencies Amid Falling Crude Oil Prices?
22.08.2022
- Chicago Fed National Activity Index
- No high-profile economic indicators are scheduled to be released.
Last weekend, the U.S. dollar remained strong as the Dollar Index traded at high levels. The EUR/USD pair fell by about 60 pips from 1.0094 to 1.0033.During today’s Asian trading session, the pair hit a new low, falling to 1.0023. We will closely monitor price movements heading into the European session to see if the decline continues and breaks this year’s low of 0.9952.
Among European currencies, the pound’s weakness was particularly noticeable, with the GBP/AUD pair falling approximately 140 pips from 1.7289 to 1.7143.The decline was accelerated by the strength of Oceania currencies, which stood in contrast to the drop in crude oil prices. The pair has continued to slide during today’s Asian trading session as well, and the GBP/AUD is currently trading around 1.7150. If the pair continues to fall, we would first set a target at 1.7115, the recent low on the 4-hour chart.
As for today’s economic indicators, aside from the Chicago Fed National Activity Index scheduled for 21:30, no major economic data releases or remarks by key officials are expected.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 p.m., and we will be watching closely to see what stance he takes on quantitative tightening (QT) during his Friday speech.
Author: Keisuke Sakurai
