US Dollar (USD) Exchange Rate Movement Dependent on Manufacturing Figures
While the USD/AUD pairing fell by the most for two-weeks on Tuesday, the US Dollar was able to advance for a seventh day against the Japanese Yen.
If you're looking to make an international money transfer, we recommend TorFX.
The run of gains against the Asian asset is the USD/JPY’s longest advance since the close of 2012.
In the opinion of industry expert Yasuhiro Kaizaki; ‘There’s been some Dollar buying on the back of strong US economic numbers. We’re in a period where the market is paying close attention to US macroeconomic factors. Data will be the focus this week.’
That being said, the ‘Greenback’ was softer against the Pound and Euro despite economists forecasting positive US data for later today.
The Richmond Fed manufacturing index is expected to strengthen from -7 to 2 in April, while the US house price index advanced by 0.5 per cent in February month-on-month.
Meanwhile, separate data may show that US existing home sales slumped by 0.9 per cent in March month-on-month following a monthly drop of 0.4 per cent in February.
USD/JPY gains were also trimmed as trading progressed and investors turned to safe-haven assets in the wake of ongoing Ukraine tensions and developments in China.
If US economic reports surprise to the upside this week – adding to the case for the Federal Reserve increasing interest rates sooner rather than later – the ‘Buck’ could advance over the next few days.
Other US news to be aware of includes Markit manufacturing PMI, new home sales figures, durable goods orders and initial jobless claims data, Markit services/composite PMI and the University of Michigan Confidence Index.
Of those reports the manufacturing data is perhaps the most influential.
However, any figures which just meet or fall below target levels could see the US Dollar dip and higher-risk assets dominate.
As it stands the US Dollar is trading against the Pound in the region of 0.5942 and against the Euro in the region of 0.7244.