Forex News Timeline

AUD/USD attracts some buyers to 0.6648 on the weaker USD.Fed’s Waller said interest rates don’t have to go higher to help get inflation back to 2%.RBA Governor Bullock said the central bank has to be cautious when using rates to bring down inflation without raising unemployment.The Australian CPI, US GDP data will be closely monitored by traders.The AUD/USD pair edges higher to the mid-0.6600s during the early Asian session on Wednesday. A softer USD, triggered by a less hawkish stance from the Federal Reserve (Fed), lends some support to the pair. At press time, AUD/USD is trading near 0.6648, up 0.05% for the day.

On Tuesday, the US CB Consumer Confidence climbed to 102.00 in November versus a downward revision to 99.1. Meanwhile, the Richmond Fed Manufacturing Index showed activity slowed in November, declining to -5.0 from 3.0 in the previous reading. The S&P/Case-Shiller Home Price Index grew 3.9% YoY in September, below the market consensus of 4.0%.

Fed Governor Christopher Waller stated that interest rates don’t have to go higher to help get inflation back to 2%. Waller added that he could see a point where the Fed might start lowering rates if inflation continues to ease over the next three to five months. This, in turn, exerts some selling pressure on the Greenback and acts as a tailwind for the AUD/USD pair.

On the Aussie front, Reserve Bank of Australia (RBA) Governor Michele Bullock said the central bank has to be cautious with using rates to bring down inflation without raising unemployment. Bullock emphasized the expectation of lowering inflation to under 3.0% in 2025.

Market players will focus on the Australian monthly CPI, which is expected to ease to 5.2% YoY in October from 5.6% in September. The stronger-than-expected data could support further upside in the AUD. Later on Wednesday, the US Gross Domestic Product Annualized for the third quarter (Q3) will be released. Traders will take cues from the data and find trading opportunities around the AUD/USD pair.  

NZD/USD could extend its rally toward 0.6200 if RBNZ’s Governor Orr strikes a hawkish message.A dovish tilt by the RBNZ could drive the pair toward the 200-DMA and below the latter.The New Zealand Dollar (NZD) is flat against the US Dollar (USD), early during Wednesday’s Asian session, ahead of the Reserve Bank of New Zealand (RBNZ) monetary policy decision. At the time of writing, the pair exchanges hands at around 0.6134, sitting above the 200-day moving average (DMA), suggesting the pair remains bullish. Given the backdrop, a hawkish stance by the RBNZ could likely underpin the pair to test the next resistance area at 0.6225, the July 31 swing high, followed by the July 27 high at 0.6273. Conversely, and the most likely scenario, RBNZ Governor Adrian Orr and Co. are expected to hold rates unchanged for the fifth consecutive meeting, which would likely weigh on the NZD/USD pair, which would dive toward the 0.6100 figure, ahead of the 200-DMA at 0.6089. If the exchange rates pierces that support level, the losses could extend to 0.6050, and beyond. NZD/USD Price Analysis – Daily ChartAlso read: New Zealand Dollar traders prepare for RBNZ interest rate meeting NZD/USD Technical Levels  

The US Dollar Index (DXY) declined to its lowest bids in over three months on Tuesday.The DXY fell nearly half a percent heading into Wednesday.Dovish Fed talk sparked a risk bid that pushed the US Dollar down across the board.The US Dollar Index (DXY) shed half a percent on Tuesday following a broad-market recovery in risk appetite as investors hit the bids, sending the US Dollar (USD) down against all of its major FX currency peers. The DXY extended into a three-month low past 102.70 and is down six-tenths of a percent on the week heading into the Wednesday market session. Fed's Waller sparks Dollar decline The US Dollar saw firm selling pressure after Federal Reserve Governor Christopher Waller commented on interest rates while speaking with Michael Strain, the Director of Economic Policy Studies, at the American Enterprise Institute. Fed Governor Waller noted that if inflation continues to decline towards the Fed's targets, he sees no reason to keep interest rates elevated going forward. The dovish sentiment, lacking particulars, was enough to kick off a fresh risk bid across the markets, sending equities, Gold markets, and risk asset classes higher as the DXY sold off. Next Up: US GDP, PCE prices Wednesday markets will be turning towards the US' latest quarterly Gross Domestic Product (GDP) growth, with median market forecasts calling for a QoQ uptick from 4.9% to an even 5.0%, while Personal Consumption Expenditure (PCE) Prices for the third quarter will also be seeing a preliminary print.  With inflation the market's hot-button topic of choice as Fed watchers loom, US PCE could see an outsized impact if prices or GDP growth surprise to the upside. QoQ PCE Prices last printed at 2.9% for the second quarter, and will provide a preview for Friday's Core PCE Price Index reading for October. Markets are currently hoping that MoM Core PCE Index figures will decline from 0.3% to 0.2%. An upside disappointment to the figure could see the DXY rally as inflation-fearing market participants tumble back into safe haven bets on the US Dollar. US Dollar price today The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Japanese Yen.  USDEURGBPCADAUDJPYNZDCHFUSD  -0.35% -0.47% -0.29% -0.58% -0.69% -0.54% -0.28%EUR0.34%   -0.12% 0.06% -0.23% -0.33% -0.21% 0.07%GBP0.48% 0.13%   0.21% -0.09% -0.19% -0.07% 0.19%CAD0.28% -0.07% -0.19%   -0.30% -0.40% -0.26% -0.01%AUD0.58% 0.22% 0.11% 0.29%   -0.10% 0.04% 0.32%JPY0.67% 0.33% 0.21% 0.41% 0.10%   0.13% 0.41%NZD0.54% 0.20% 0.07% 0.26% -0.04% -0.14%   0.27%CHF0.27% -0.08% -0.21% 0.00% -0.31% -0.42% -0.26%   The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote). Dollar Index Technical Outlook The US Dollar flattened across the board on Tuesday, declining against all of its major currency pairings. The USD declined the most against its Pacific market peers, shedding almost seven-tenths of a percent against the Japanese Yen (JPY), nearly 0.6% against the Aussie (AUD), and just under six-tenths of a percent against the Kiwi (NZD). Tuesday's half-percent backslide in the DXY takes the Dollar Index further south of the 200-day Simple Moving Average (SMA), and there is little in the way of near-term technical support for the DXY until mid-July's swing lows below the major 100.00 handle. Dollar Index Daily Chart Dollar Index Technical Levels      

GBP/JPY witnesses a decline of over 0.20%, with the Japanese Yen gaining strength against major currencies.Despite the pair's overall bullish trend, recent price actions have formed a 'double top' pattern, thought further confirmation needed, with prices breaking below 184.46.Conversely, a move above the November 28 daily high of 187.87 could set the stage for the pair to test the year-to-date high at 188.80.The GBP/JPY retreats on Tuesday by more than 0.20%, as the Japanese Yen (JPY) appreciated further against most G8 FX currencies. Market participants estimate that central banks in developed countries would cut rates, boosting the appetite for the Yen's safe-haven status and Gold. Therefore, the pair is trading at 187.24 after hitting a daily high of 187.87. Even though the GBP/JPY remains bullish, price action during the last couple of days, has formed a ‘double top’ chart pattern, implying that lower prices are coming. Nevertheless to confirm the pattern, the cross must drop below the November 21 swing low at 184.46, but sellers must breach support levels on its way to the latter. The first support would be the Tenkan-Sen at 186.55, followed by the Senkou-Span A at 185.63. A decisive break, the pair would dive to the Kijun-Sen at 184.71, before testing the latest cycle low. Once done, the ‘double top’ chart pattern targets the 180.50 area. On the flip side, if GBP/JPY buyers reclaim the November 28 daily high at 187.87, that could open the door to challenge the year-to-date (YTD) high at 188.80. GBP/JPY Price Analysis – Daily Chart GBP/JPY Technical Levels