The US Dollar underperformed in Asian trade as regional investors took their turn to respond to what has been an FOMC policy announcement that the markets have interpreted as dovish. The Australian and New Zealand Dollars duly rose, reveling in support from yield-seeking capital flows as US Treasury yields edged down alongside the greenback.
From here, a quiet European data docket is likely to see traders looking to the US durable goods ordersnumbers for direction cues. An increase of 3.7 percent is expected, the largest in eight months. US economic news-flow has increasingly improved relative to baseline forecasts recently, opening the door for an even rosier result. This seems unlikely alter Fed policy bets as second-quarter GDP figures near however.
A confirmation hearing for Randal Quarles, the Trump administration’s nominee to the Fed’s financial supervision post, may also generate volatility. Mr Quarles’ is generally known to favor a light regulatory touch and comments confirming as much may pass without fireworks. His views on monetary policy might generate a response however since he would have a vote on the FOMC if confirmed.
Asia Session
European Session
** All times listed in GMT. See the full DailyFX economic calendar here.
