The US dollar gained ground amid growing Treasury yields. It also rose following hawkish comments of Fed policymakers and unexpectedly strong data on PMI indices and new home sales. Fresh economic reports signaled the likelihood of further monetary tightening.

In the morning, the greenback climbed to 103.5 versus its main rivals. However, later, it was rather volatile. It was moving in the narrow range of 103.3–103.5. However, it retained a bullish bias.

Usually, demand for the US dollar as a safe-haven asset rises amid market uncertainty. If the US becomes the reason for market chaos, it may have a negative impact on the US dollar as well as inter-market correlations.

The yen took advantage of grim prospects for the US dollar. In the Asian session, the yen made several attempts to advance against the greenback in the price range of 138.2–138.7.

However, market sentiment can change rather quickly. For example, this morning, the pound sterling tipped the balance of power between the yen and the US dollar.

After the publication of reports on unexpectedly high inflation in the UK, the pound sterling jumped. becoming one of the strongest currencies in the basket. The yen was unable to pick up a trajectory, fluctuating at 138.5.

As for the Australian dollar, it was steadily moving in the bearish channel of 0.6567–0.6622.

According to fresh macro stats, the Australian economy has begun to slow down. This is why the RBA could take a pause in the tightening cycle. The Aussie mainly reacted to external factors in the Asian session.

Risk aversion in stock markets and the strong US dollar are the main bearish factors for the Aussie. It tested the April low of 0.6575. It could drop to the March low of 0.6565.

The Australian currency even ignored rising oil prices, which jumped to 3-week highs. However, the Aussie may recover as the US dollar index may tumble due to default fears.

The New Zealand dollar also made an attempt to rebound. The kiwi/dollar pair was trading near the upper border of the range of 0.6131–0.6258 amid a weak bullish sentiment.

However, the kiwi failed to resume steady growth. It fell sharply to 0.6137 after the Reserve Bank of New Zealand’s rate decision.

00:00 Intro
00:21 US
00:57 Joe Biden
01:30 Janet Yellen
02:20 USDX
03:11 USD/JPY
03:56 AUD/USD
04:51 NZD/USD
05:16 Reserve Bank of New Zealand

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