The US Dollar Index traded at 10-month trough as concerns grow over the Federal Reserve’s likeliness to hike interest rates given the current economic environment. The Index, which FX traders use to assess the Dollar’s relative weight, has fallen some 8.8% since the January 3rd high of 103.82; currently, it trades at 94.706 .DXY. The Dollar is broadly lower, as a result, and could sink lower on concerns that Donald Trump won’t be able to push through his healthcare agenda now that several more US Republican Senators appear to be jumping ship and opposing the latest iteration of the legislation. Analysts say that without passage, the tax cuts for the upper 1% of US citizens won’t “trickle down” into the economy.
As reported at 11:08 am (BST) in London, the USD/JPY was trading at 112.213 Yen, down 0.39%; the pair had hit a low of 111.983 Yen in today’s trading session. The EUR/USD was up 0.64% to trade at $1.1551, moving off the session peak of $1.15607 while the session trough stands at $1.14708.
Aussie Lifted on RBA’s Upbeat Outlook
In Australia, the Aussie hit a 2-year peak and traded 1.3% higher against its US counterpart after the Reserve Bank of Australia noted an upbeat economic outlook in its most recent meeting minutes. Today’s jump is the largest gain in a single day within the past four months. Analysts say that while the RBA’s position is encouraging that too much shouldn’t be read into it since there is still uncertainty regarding inflation, wages and the housing market. The AUD/USD is currently trading at $0.7936, up 1.76%; the pair has ranged from a session low of $0.77856 to a peak of $0.79437.