NZD, AUD Lead 1.57% FX Rally Against Dollar as Traders Ignore Hawkish Fed Minutes
Updated
Updated · MarketPulse · Aug 22
NZD, AUD Lead 1.57% FX Rally Against Dollar as Traders Ignore Hawkish Fed Minutes
3 articles · Updated · MarketPulse · Aug 22
Summary
NZD/USD jumped 1.57% and AUD/USD gained 1.33% in the Aug. 17-21 week as a midweek dollar sell-off lifted major currencies broadly.
Fed minutes showed three dissents for an immediate 25-basis-point hike, but traders treated them as stale and focused instead on cooler U.S. inflation and job data.
FedWatch pricing for the Sept. 16 meeting swung back to a 60%-70% probability for a 350-375 bps target rate by Aug. 21, reinforcing expectations for easier Fed policy.
Canada's July CPI accelerated to 3.0%, helping push USD/CAD down about 0.2% to 1.3850, while Australia's 15,800 job loss sent unemployment to 4.5% before the broader dollar retreat lifted AUD.
The move extends a week of dollar weakness that had already been amplified by concern over U.S. Treasury bond buybacks ahead of Jackson Hole.