Watch for any shifts in currency strength following Fed Chair Powell’s congressional testimony
09.07.2024
- Hao·NAB Business Sentiment Index
- Taiwan: Trade Balance
In the U.S. currency market yesterday, the U.S. dollar strengthened against the yen. The USD/JPY pair rose from 160.260 to 161.117. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the 75-period 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 comments 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 across the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 20-period MA is acting as a support level, while on the daily chart, price fluctuations are occurring near the +2σ level of the Bollinger Bands. On the weekly chart, both the RSI and Bollinger Bands are positioned in the middle, so we will be watching closely to see if any remarks 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, the U.S. NFIB Small Business Optimism Index at 19:00,at 9:00 PM, Mexico’s Consumer Price Index; at 10:15 PM, remarks by Fed Vice Chair Bar; at 11:00 PM, congressional testimony by Fed Chair Powe and Treasury Secretary Yellen; at 2:00 AM, the U.S. 3-year Treasury auction; and at 2:30 AM, remarks by Fed Chair Bowman.We should watch for any shifts in currency strength due to the overlapping remarks by key officials during U.S. trading hours.
Author: Keisuke Sakurai
