The AUD/USD ended the day in the green but finished the week 0.45% lower amid growing bets that the Fed will raise rates next week, boosting the US Dollar. Nevertheless, on Friday, the pair traded at 0.7171, up a decent 0.38%.
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/SGD has rebounded strongly, with short-term momentum pointing higher but key resistance at 1.2705 expected to limit gains.
The USDCHF climbs over 0.40% on Friday after US consumer inflation data, coupled with Thursday's PPI, pushed investors to price in a Fed interest rate hike at next week's meeting. The pair trades at 0.8165 after rebounding from daily lows of 0.8124.
DBS Group Research expects Taiwan’s central bank to keep its policy rate unchanged on September 17, before raising it to 2.125% in December.
West Texas Intermediate (WTI) trades near $97.00, about 3.4% lower and on track for its first down session in five.
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann reports that USD/CNH has bounced sharply to 6.7153, with intraday gains likely capped near 6.7200.
Silver price registers gains of over 1%, yet it is trading below the ‘head and shoulders’ neckline, an indication that the overall trend in the short-term may be tilted to the downside. The XAG/USD trades at $64.24, after bouncing off daily lows of $62.94.
The US Dollar Index (DXY) closes the week near the 99.00 zone, little changed on the day and holding the ground it clawed back after a brief wobble on Thursday's US inflation release.
ING analysts Chris Turner and Padhraic Garvey argue the Bank of Japan is likely to hike 25bp to 1.25% and then proceed cautiously.
US Treasury yields fall during the North American session on Friday following the release of US inflation data, but are poised to finish the week higher. The US 10-year Treasury yield is down one basis point to 4.951% but has gained over 16 basis points, or 3.49%, this week.
MUFG’s Michael Wan notes that Asia FX and rates have stayed relatively stable despite sharply higher US Treasury yields, but he warns this resilience may not last in the near term.
USD/JPY is trading around 153.70 on Friday, down for the day after briefly spiking above 154.50 following the US inflation release.
The US Dollar Index (DXY) reverses earlier gains on Friday as a pullback in longer-dated US Treasury yields outweighs support from the latest US Consumer Price Index (CPI) report, which strengthened expectations that the Federal Reserve (Fed) will raise interest rates next week.
Gold (XAU/USD) price bounces off daily lows beneath $4,300 on Friday and reclaims the 100-day Simple Moving Average (SMA) of $4,335 following the release of US inflation data, which fueled speculation that a Federal Reserve (Fed) rate hike next week is almost certain.
EUR/GBP is easing on Friday and slipping toward the 0.8580 area. The cross had pushed to the top of its recent range in the high 0.8590s before running out of steam.
Silver (XAG/USD) rebounds sharply on Friday, trading around $64.30 at the time of writing, up 1.13% on the day. The white metal recovers after briefly falling to a three-week low of $62.94 in the immediate reaction to the latest United States (US) inflation figures.
The Dow Jones Industrial Average trades just beneath 52,600, roughly 510 points higher, after four sessions of losses. The inflation print was worth about 100 points at 12:30 GMT, and the rest of the advance arrived in the afternoon once the long end of the Treasury curve turned.
West Texas Intermediate (WTI) Oil comes under heavy selling pressure on Friday as traders lock in profits following a sharp rally that pushed the US benchmark to its highest level since May 21. At the time of writing, WTI trades around $96.50, down roughly 4% on the day.
The Pound Sterling (GBP) climbs slightly against the US Dollar (USD) on Friday, up 0.10%, as the latest US consumer inflation report came in line with forecasts, and although money markets have increased the odds of a Federal Reserve (Fed) rate hike next week, traders faded the initial reaction.
AUD/USD is edging higher today but is yet to retake the 0.7200 mark on Friday. The pair is clawing back part of the previous session's sharp sell-off after hitting multi-month highs in the high 0.7200s.
DBS Group Research forecasts an improvement in China’s industrial production to 5.0% year-on-year in August, helped by strong export growth driven by AI-related electronics.
Commerzbank economists, led by Dr. Henry Hao and colleagues, note Taiwan’s August trade surplus hit a record USD22.3bn, driven by strong AI-related exports. Electronics and semiconductor shipments surged, lifting overall exports and imports.
ING economists Deepali Bhargava and Lynn Song expect the Bank of Japan to raise its policy rate by 25bp to 1.25%, citing persistent price pressures. They project two further 25bp hikes in January and April 2027, taking the rate to 1.75%.
USD/CHF holds onto gains on Friday even as the US Dollar (USD) turns lower following the release of the latest United States (US) Consumer Price Index (CPI) report, which strengthened expectations that the Federal Reserve (Fed) could raise interest rates next week.
DBS Group Research expects India’s inflation to accelerate to 4.9% year-on-year, with food and energy costs driving a gradual broadening of price pressures.
USD/CAD rises 0.27% on Friday and trades around 1.3870 at the time of writing, after reaching a daily high of 1.3882 in the immediate reaction to the release of United States (US) inflation data.
Deutsche Bank’s Chief UK Economist Sanjay Raja highlights stronger-than-expected UK GDP data, with July output rising 0.4% month-on-month and broad-based gains across services, production and construction.
American consumer confidence is expected to lose some traction in September, as households have been growing more pessimistic about current conditions and the broader economic outlook, according to preliminary data from the University of Michigan.
ING’s Frantisek Taborsky notes that the National Bank of Poland maintained a dovish stance, signalling no need to adjust rates potentially until mid-next year despite rising inflation.
Gold (XAU/USD) rebounds on Friday, reversing most of the previous day’s losses as a pullback in the US Dollar, US Treasury yields and Oil prices supports the precious metal.
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