Australian Dollar Sep '23 (A6U23)
Australian Dollar Futures Market News and Commentary
The dollar index (DXY00) today is down by -0.15%.  The dollar is under pressure today as stocks recover on hopes for a ceasefire in Iran, curbing liquidity demand for the dollar. Axios reported that the US, Iran, and a group of regional mediators are discussing the terms for a potential 45-day ceasefire that could lead to a permanent end to the war. The dollar added to its losses today after the Mar ISM services index fell more than expected.Â
The US Mar ISM services index fell -2.1 to 54.0, weaker than expectations of 54.9. The Mar ISM services prices paid sub index rose +7.7 to a 3.5-year high of 70.7, stronger than expectations of 67.0.
Swaps markets are discounting the odds at 1% for a +25 bp rate hike at the April 28-29 FOMC meeting.
The dollar continues to be undercut by a poor outlook for interest rate differentials, with the FOMC expected to cut interest rates by at least -25 bp in 2026, while the BOJ and ECB are expected to raise rates by at least +25 bp... Read more
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