U.S. Dollar Rises As Asian Markets Traded Lower
01 May 2024 - 12:57PM
RTTF2
The U.S. dollar strengthened against other major currencies in
the Asian session on Wednesday, as Asian stock markets traded lower
in thin holiday trading, following the broadly negative cues from
global markets overnight, as most of the markets are closed for a
Labor Day holiday. Treasury yields jumped on stronger-than-expected
U.S. wage data. Traders also remained cautious ahead of the U.S.
Fed's monetary policy decision later in the day.
Losses across most sectors led by mining and energy stocks amid
tumbling commodity prices, also led to the downturn of investor
sentiment.
Crude oil prices drifted lower, weighed down by a stronger
dollar, rising crude production in the U.S. and concerns about
economic growth and the outlook for oil demand. West Texas
Intermediate Crude oil futures for June ended down by $0.70 at
$81.93 a barrel.
In the Asian trading now, the U.S. dollar rose to an 8-day high
of 1.0654 against the euro and nearly a 7-month high of 0.9217
against the Swiss franc, from yesterday's closing quotes of 1.0665
and 0.9193, respectively. If the greenback extends its uptrend, it
is likely to find resistance around 1.05 against the euro and 0.93
against the franc.
Against the pound and the yen, the greenback advanced to a 5-day
high of 1.2472 and a 2-day high of 157.93 from yesterday's closing
quotes of 1.2490 and 157.80, respectively. The greenback may test
resistance near 1.23 against the pound and 161.00 against the
yen.
Against the Australia and the New Zealand dollars, the greenback
climbed to an 8-day high of 0.6465 and nearly a 2-week high of
0.5877 from Tuesday's closing quotes of 0.6472 and 0.5886,
respectively. The next possible upside target of the greenback is
seen around 0.63 against the aussie and 0.57 against the kiwi.
The greenback edges up to 1.3783 against the Canadian dollar,
from yesterday's closing value of 1.3777. On the upside, 1.39 is
seen as the next resistance level for the greenback.
Looking ahead, U.S. MBA mortgage approvals data, Canada and U.S.
PMI data for April, U.S. construction spending for March and U.S.
EIA crude oil data are slated for release in the New York
session.
At 2:00 pm ET, the Federal Reserve is set to end its two-day
policy meeting today. The central bank is expected to leave the Fed
funds target rate in the 5.25 per cent to 5.50 percent range.
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