Powell will speak at the Economic Club of Washington, where Commerzbank analysts expect him to take a tough tone, which could give another boost to the US currency.
The australian currency rises as much as 1% and touching an intraday high of $0.6952 after the country’s central bank to raise rates by 25 basis points and affirm that more hikes will be needed, which implies a more aggressive policy than many expected. The currency was last trading at $0.69415.
“By stating that they believe inflation will stay high for a prolonged period, the RBA (Reserve Bank of Australia) is undermining any idea of easing later this year or early next year,” he said. Rob Carnell, of ING, in dialogue with Reuters. “This will lift long-term bond yields and short-term rate expectations. It will also boost the Australian dollar.”
“You have an opportunity to backtrack on some of the comments you made on Wednesday of last week that led to this pessimistic reading,” said Simon Harvey, from Monex, although he added that he does not expect any new message from Powell.
He dollar indexwhich compares the greenback to a basket of six major currencies, climbs 0.3% and quote to 103,920 units.
He euro yields a 0.1% to $1.0695after touching its lowest level since January 9; the pound sterling won a 0.1%, to $1.20275; and the yen operated at 131.78 units per dollar, moving away from the one-month low reached Monday at 132.90.
Source: Ambito
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