Despite the news that the 4th quarter Gross Domestic Product report for the United States was worse than expected at 2.2% (year-over-year) against forecasts of a drop to 2.4%, the US Dollar is poised to move higher. Analysts say that it is likely to strike a 3-week high after the report of a strong rise in yields in US Treasury instruments helped to support sentiment. Currency strategists say that the US Dollar Index, a gauge of the Dollar's strength relative to major peers, is likely to see a rise of at least half a percent by the end of this trading week, and has, in fact, risen nearly 1.5% since March 20th.
As reported at 11:11 am (JST) in Tokyo, the USD/JPY was trading at 110.7820 Yen, a gain of 0.1302%); the pair has ranged from a trough of 110.535 Yen to a peak of 110.931 Yen. The AUD/USD was trading at $0.7982, up 0.0919% while the NZD/USD was trading at $0.6779, up 0.0354%.
Trade Talks in Focus
Later today, markets are expected to turn their attention to the ongoing trade talks between US and Chinese officials. There is hope that some progress will be made. The decline in trade output and growth in China is having a global impact, so any positive outcome will help to shift sentiment toward risk-based currencies. Also on the agenda for the day, two key policymakers from the US Federal Reserve are scheduled to speak and their comments will be scrutinized for any signals of a potential policy shift.