US Dollar Recovers Some Ground After NY Fed Backtracks on Earlier Rate Cut Comments

. 2 min read

The AUDUSD opens at 0.7043 (mid-rate) and the NZDUSD opens at 0.6765 (mid-rate) this morning.

The USD pushed higher on Friday breaking a 2-day losing streak after a spokesperson for the NY Federal Reserve said the market had taken out of context earlier comments from NY Fed President John Williams.

On Thursday Mr Williams’ had stated that the Fed would have to cut rates in the upcoming monetary policy meeting and that the Central Bank would have to act quickly and forcefully as economic growth was slowing.

The NY Fed spokesperson said Mr Williams speech “was an academic speech on 20 years of research’ and that “It was not about potential policy actions at the upcoming FOMC meeting."

On the economic news front a preliminary report from the University of Michigan showed US consumer sentiment in the month of July has improved slightly but not as much as forecast. The data shows the index has inched up to 98.4 from June’s final reading of 98.2. economists had forecast the index to hit 98.6.

Crude oil prices are set to spike with geopolitical tensions increasing after Iran seized a British oil tanker in the Strait of Hormuz. The UK government are demanding its immediate release and threatening Tehran with “serious consequences,” Iran claim the ship was seized after it crashed into a fishing vessel.

Global equity markets closed mixed on Friday - Dow -0.25%, S&P 500 -0.61%, FTSE+0.21%, DAX+0.26%, CAC +0.03%, Nikkei+2.0%, Shanghai +0.79%.

Gold prices hit a fresh six year high of $1,454on Friday before retracing the move and closing out the week $1,426 an ounce. WTI Crude Oil prices held steady on Friday, closing at $55.76 a barrel.

Mid-Market Rates

AUDUSD 0.7043 -0.4% NZDUSD 0.6765 -0.3%
AUDEUR 0.6274 0.0% NZDEUR 0.6032 0.3%
AUDGBP 0.5632 -0.1% NZDGBP 0.5408 0.0%
AUDJPY 75.84 0.0% NZDJPY 72.91 -0.2%
AUDNZD 1.0408 -0.2% NZDAUD 0.9608 0.2%
GBPAUD 1.7756 0.1% NZDCAD 0.8835 -0.1%
      GBPNZD 1.8491 0.0%

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