USD Softens on Fed Confidence, Trade Progress

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Forex Market

USD: Dollar Softens on Fed Confidence, Trade Progress
The greenback stayed under pressure as U.S. yields fell and optimism over U.S.-China trade talks buoyed sentiment.
  • AUD/USD traded in a firm 0.65045–0.6558 range, last near 0.6550.
  • NZD/USD advanced above 0.6000 amid broad USD weakness.
  • EUR/USD climbed to highs of 1.17605 before easing slightly.
  • GBP/USD touched 1.3532, remaining strong late in trade.
  • USD/JPY fell to lows of 146.31 as the USD remained offered.
  • USD/CAD slipped to 1.3606, tracking gains in oil.
AUD: Supported by Risk Sentiment
AUD/USD remains buoyant ahead of key data, with bids near 0.6400 and resistance around 0.6600.

Key Economic Data Ahead (Sydney Time)

 

General Market

Wall Street

Mixed session as trade optimism offset concerns over Fed policy:
  • Dow Jones +0.4%
  • S&P 500 flat
  • Nasdaq -0.4%
U.S. 10-year yields eased 4bps to 4.34%; Brent crude slipped 0.6% to $68.80/bbl.
Asia-Pacific
  • Hang Seng +0.4%, Shenzhen +0.8%, Nikkei -0.1%
  • ASX +0.1% (materials +2.4%, health care +2.1%)
Europe
  • Stoxx -0.4%, FTSE flat, DAX -0.4%, CAC -0.4%

 

Headlines to Watch

Bessent Signals Confidence in Powell
U.S. Treasury Secretary said there’s no reason for Powell to step down; noted tariff talks with China have reached a “new level.”
Philly Fed Non-Manufacturing Index
Improved to -10.3 in July from -25.0.
Richmond Fed Manufacturing Index
Fell to -20, well below expectations of -2.
Trump Criticism of Fed
Claimed rates remain “too high” and should be near 1%.

 

Mid-market rates

Currency PairMid-market Rate
AUD/USD0.6552
AUD/NZD1.0918
AUD/JPY96.24
AUD/CNY4.7007
AUD/EUR0.5582
AUD/GBP0.4846
AUD/HKD5.1438

 

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