The US Dollar index spiked to 90 levels throughout Tuesday’s sesseion, so far it has been a good start of week for the USD as it recovered around 1.6% from last Thursday’s lows of 88.56. This morning so far USD seems to have started on a weaker footing with most of the majors but is still in profit when seen against the commodity currencies (CAD,AUD,NZD).
In the background some significant US equity price swings have been determining the USD’s direction. Later today we are expecting some speakers from the Fed and any hints with regards to the pace of the rate hike cycle will likely feed into the USD’s performance.
The commodity bloc currencies marked some significant losses this morning as they corrected from earlier gains. Late into Tuesday’s session NZ reported some better than expected Unemployment data.
Later today watch out for German Industrial Production, ECB and Fed Speakers, and NZ official cash rate.