The US Dollar was generally mixed in Asian trade, though sentiment is positive overall given support from an unexpectedly more hawkish outlook from the Federal Reserve bank and a US economy still relatively stronger than had been anticipated. As a safe haven currency, the greenback is also being supported by the increased risks of the US-China trade rift. Currency strategists are not discounting the US political noise, however, as it focuses on impeachment investigations of Donald Trump.
The EUR/USD was trading lower, at $1.0915, down 0.0082% as of 10:42 am in Tokyo. The GBP/USD was also down, at $1.2326, a loss of 0.9957%, while the USD/JPY was at 107.7760 Yen, down 0.510%.
Focus on Antipodean Currencies
In Asia, the Australian Dollar is getting support ahead of next week's meeting of the Reserve Bank of Australia. Analysts are predicting that the RBA is likely to lower its benchmark lending rate by 25 basis points to 0.75%. The AUD/USD was higher at $0.6749, up 0.0252%. The head of the Reserve Bank of New Zealand had said yesterday that the outlook for the New Zealand economy in a low rate environment should be viewed as an opportunity for investment. That suggested to some analysts that the RBNZ is likely to keep its official cash rate at low levels for an extended period. The NZD/USD was trading down at $0.6287, a loss of 0.0906%.