Firmer U.S. Dollar Keeps AUD, EUR and GBP Near Range Lows as Markets Await BoE and ECB Policy Signals

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Forex Market 

AUD Jumps on Hawkish RBA as USD Trades Mixed
The AUD was the standout following the RBA’s 25bp rate hike to 3.85% and a notably more hawkish shift in guidance. AUD/USD rallied from around 0.6960 to an intraday high of 0.70505 before consolidating near 0.7020 as global risk sentiment softened. The pair traded within a 0.6946–0.7051 range, with demand emerging ahead of 0.6950 and offers seen toward 0.7100.
Elsewhere, the USD was mixed. Early softness saw EUR/USD and GBP/USD push to highs of 1.1829 and 1.3706, respectively, before a USD rebound during London trade reversed those gains. USD/JPY continued to climb, reaching fresh highs near 156.08, reflecting yield support despite broader equity weakness.
NZD/USD traded between 0.5997–0.6056, with markets cautious ahead of New Zealand labour market data.

 

General Market

Wall Street

  • Dow Jones +0.3% (49,412)
  • S&P 500 -0.7% (6,870)
  • Nasdaq -1.5% (22,901)
  • VIX jumped to 19.72 (+9.6%)

Asia-Pacific

  • ASX 200 +0.8% (8,928), led by mining and energy
  • Nikkei -0.8% (54,293)
  • Shanghai Comp +0.8% (4,102)

Europe

  • FTSE 100 +0.9% (10,402)
  • CAC 40 +1.0% (8,262)
  • DAX -0.7% (24,603)

 

Headlines to Watch

  • United States: Markets will focus on initial jobless claims following a weaker-than-expected ADP employment report and rising long-end Treasury yields after the USD 125bn refunding announcement.
  • United Kingdom: The Bank of England is expected to keep rates unchanged at 3.75%, with attention on guidance and the February Monetary Policy Report.
  • Eurozone: The ECB is widely expected to hold the deposit facility rate at 2%, as policymakers assess easing inflation and recent euro strength.
  • Australia: December trade balance data is due, with AUD/USD trading near the lower end of its recent range amid broad USD strength.
  • Japan: The yen remains in focus after USD/JPY climbed toward 156.86, following comments supporting a weaker currency ahead of the February election.
Currency PairMid-market Rate
AUD/USD0.6997
AUD/NZD1.1661
AUD/JPY109.75
AUD/CNY4.8557
AUD/EUR0.5927
AUD/GBP0.5126
AUD/HKD5.4658

 

 

 

 

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