Watch for any shifts in currency strength following Fed Chair Powell’s congressional testimony
09.07.2024
- NAB Business Sentiment Survey (Australia)
- Taiwan: Trade Balance
In the U.S. currency market yesterday, the U.S. dollar rose against the yen. The USD/JPY pair rose from 160.260 to 161.117. It moved from below the 20-period moving average (MA) on the hourly chart to above it.On the 4-hour chart, the 75-period moving average (MA) is acting as support, while on the daily chart, the price has rebounded after touching the 10-period MA. Since the weekly chart has shown four consecutive bullish candles, traders should watch for price movements triggered by remarks from key officials during U.S. trading hours.
Among European currencies, the euro rose against the U.S. dollar. The EUR/USD pair rose from 1.0801 to 1.0845. The price moved above the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the 20-period moving average is acting as a support level, while on the daily chart, prices are fluctuating near the +2σ level of the Bollinger Bands. On the weekly chart, both the RSI and Bollinger Bands are centered, so we will be watching closely to see if comments from key figures during U.S. trading hours will cause a shift in direction.
Today’s economic indicators include the Australian Westpac Consumer Confidence Index at 9:30, the Philippine unemployment rate at 10:00, the Australian NAB Business Confidence Index at 10:30, Japanese machine tool orders at 15:00, Taiwan’s trade balance at 17:00,7:00 PM: U.S. NFIB Small Business Optimism Index; 9:00 PM: Mexico Consumer Price Index; 10:15 PM: Remarks by U.S. Federal Reserve Vice Chair Bar; 11:00 PM: Congressional testimony by U.S. Federal Reserve Chair Powell and U.S. Treasury Secretary Yellen;at 26:00, a U.S. 3-year Treasury auction; and at 26:30, remarks by Federal Reserve Chair Bowman. Keep an eye on whether currency strength and weakness shift amid the overlapping remarks by key figures during U.S. trading hours.
Author: Keisuke Sakurai
