Though key members of the US Federal Reserve are due to speak later today, FX traders are waiting to hear from Janet Yellen, the Chairperson, to get a better idea of how the Fed intends to proceed. The latest Fed rhetoric pushed through plans for another rate hike in the near term. Yellen’s speech could either solidify investors’ expectations or else put more tightening on the back burner. In the interim, markets’ uncertainty over that and a rise in commodity prices helped drive safe haven demand.
As reported at 10:51 am (BST) in London, the USD/JPY was trading at 109.9800 Yen, down 0.20%; the pair has ranged from 109.4215 Yen to 110.2400 Yen, in today’s trade. The EUR/JPY is 0.03% higher at 123.0010 Yen. The AUD/JPY is trading at 79.3104 Yen, up 0.02%.
Chinese Growth Concerns Pressure Asian FX
FX traders appear to be concerned, generally, about China’s economy which had, until recently, showed some steady signs of improvement. That concern is resulting in bearish sentiment against some Asian currencies, primarily those with emerging economies; however, currencies like the Aussie and Kiwi Dollar are also impacted by sentiment which pertains to China’s growth. The AUD/USD is trading at $0.7214, up 0.25% while the NZD/USD is trading at $0.6732, a gain of 0.06%.