The USD is expected to consolidate this week whilst the AUD rose against all major crosses.
The USD consolidated overnight. US equities are higher and the Treasury curve steepened slightly. US interest rate markets continue to price some chance of a 50bp FOMC rate hike in March, but we are seeing few signs yet that interest rate markets are becoming more convinced a 50bp is the most likely option. James Swerling joined ausbiz for a wrap on the days currency plays and says the Australian Dollar push toward US$0.7130 was more of a broader sentiment player rather than a commodities one. GBP/USD pared earlier losses and is trading near US$1.3535 and James says the Bank of England will continue to underpin any moves, however with central banks now moving largely in tandem, he expects any upside will be contained. Find out James’s view on USD/JPY.
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