Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Asia FX Tepid, Dollar Steadies Ahead of U.S. CPI Inflation

Forex Sep 13, 2022 12:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
EUR/USD
0.37%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/JPY
-1.21%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AUD/USD
+0.36%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NZD/USD
+0.82%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/HKD
-0.33%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/KRW
-0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick

Investing.com-- Most Asian currencies moved little on Tuesday, while the U.S. dollar curbed a recent losing streak as markets turned cautious ahead of hotly anticipated U.S. inflation data later in the day.

Regional units such as the Chinese yuan, Hong Kong dollar, and South Korean won barely budged against the dollar in anticipation of the data.

The greenback on the other hand appeared to have stabilized after five straight days of losses. The dollar index fell 0.1%, while dollar index futures lost a similar amount. Both indicators lost about 2% each in the past five sessions, as they retreated from a 20-year peak hit last week.

Profit-taking and cooling inflation expectations were the biggest reasons behind the greenback’s retreat.

U.S. CPI inflation, due at 08:30 ET (12:30 GMT), is expected to show that inflation eased further off 40-year highs in August, declining for a second consecutive month. Markets hope the reading will provide more indicators of easing price pressures on the U.S. economy.

Rising inflation spurred a series of sharp interest rate hikes by the Federal Reserve this year, a move that boosted the dollar and significantly weighed on Asian currencies.

But even with inflation appearing to be on the downtrend, the Fed is widely expected to keep hiking interest rates until the reading comes between its annual target of 2%. Traders are pricing in an over 90% chance of a 75-basis point hike by the central bank next week.

Still, expectations of an eventual softening in the Fed’s hawkish stance weighed on the dollar. This also benefited the Japanese yen and the euro- two currencies that saw outsized losses against the dollar this year due to a widening gulf in interest rates.

The Japanese yen rose 0.2% on Tuesday, while the euro added 0.1%. Both currencies are still trading near multi-year lows to the dollar.

In the Asia-Pacific region, the Australian dollar sank 0.2%, after data showed that consumer and business sentiment remained subdued in the country, despite a mild improvement in recent months.

The New Zealand dollar fell 0.2% ahead of current account and GDP data due later this week. Annualized economic growth in the country is expected to have severely declined in the second quarter, due to rising inflation and interest rates.

Asia FX Tepid, Dollar Steadies Ahead of U.S. CPI Inflation
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Chris Chan
Chris Chan Sep 13, 2022 12:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This article is useless and irrelevant as CPI did not come out as expected.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email