Markets Slide Ahead of FOMC as Risk Sentiment Weakens

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Forex Market 

USD Softens on Risk-Off Flows; AUD Holds in Tight Range
The USD began the week mixed as markets adopted a cautious tone ahead of the upcoming FOMC meeting. AUD/USD traded within a narrow 0.66141–0.6649 band before settling around 0.6620/25, while EUR/USD and GBP/USD briefly touched 1.1671 and 1.33444 in Asian trade before retreating into the European open. A magnitude 7.6 earthquake in Japan triggered risk-off sentiment during the NY session, pushing USD/JPY to fresh highs near 155.99 and pressuring the Antipodeans to intraday lows at 0.6618 (AUD) and 0.5763 (NZD).
EUR/USD and GBP/USD later found support around 1.1625 and 1.3310, respectively, though both pairs struggled to regain earlier momentum. The Dollar Index traded softer overall, dipping toward 98.94 during light morning flows before USD buying re-emerged on risk aversion.

General Market

Wall Street

  • Dow Jones: -0.6%
  • S&P 500: -0.5%
  • Nasdaq: -0.4%
  • U.S. 10-yr: +3 bps to 4.17%
  • Gold: $4206/oz
  • Dollar Index: 98.944

Asia-Pacific

  • Shenzhen: +0.8%
  • Nikkei: +0.2%
  • Hang Seng: -1.2%
  • ASX 200: -0.1% (utilities -0.9%, materials -0.8%)
  • AUD/USD: Traded in a tight regional range

Europe

  • DAX: +0.2%
  • Stoxx 600: +0.1%
  • CAC: -0.2%
  • FTSE: Flat to -0.2%
  • German 10-yr: 2.86%
  • Brent crude: $62.75/bbl

Headlines to Watch 

United States

  • Hasset (NEC Director) reiterated that future rate cuts depend heavily on economic data.
  • Job Openings (JOLTS) and NFIB data expected to guide labor market sentiment.
  • USD saw broad buying after risk-off flows following Japan’s earthquake.

Europe

  • ECB’s Nagel to speak in Frankfurt.
  • EUR/USD remains sensitive to yield spreads and risk flows.

Asia / Australia

  • RBA rate decision today; AUD steady ahead of the announcement.
  • Asian markets cautious after Japan’s earthquake and tsunami advisory.

Mid-market rates

Currency PairMid-market Rate
AUD/USD0.6622
AUD/NZD1.1470
AUD/JPY103.05
AUD/CNY4.6819
AUD/EUR0.5690
AUD/GBP0.4970
AUD/HKD5.1525

 

 

 

 

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