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China Imports Fall Below Forecasts, Boosting USD Volatility Concerns
Developing
In Short: Mixed China trade balance data and inflation concerns keep the USD volatile ahead of the Fed meeting.
China's August imports came in 28.2% below forecasts, undershooting expectations by 30%, according to FXStreet. This mixed data keeps the pair restricted, adding to market uncertainty.
Market pricing suggests a roughly 60% probability for a Federal Reserve hike, indicating divided positioning and potential significant USD volatility around the upcoming Fed meeting, depending on inflation prints relative to forecasts.
The USD/JPY accelerates its decline, trading at its lowest level since late February below 155.00, as an aggressively hawkish BoJ repricing continues to drive the Japanese Yen higher, according to FXStreet.
Gold shows resilience below the $4,400 mark, recovering intraday losses during the first half of the European session, amid mixed market cues.
What's confirmed
What's still developing
- However, mixed China trade balance data keep the pair restricted.
- AUD/USD consolidates just below its highest level since mid-May, touched on Friday, and hovers around 0.7200 at the start of a new week amid mixed cues.
- Commerzbank’s Thu Lan Nguyen notes that the latest US labour market report does not materially alter expectations for a September Fed rate move, leaving August US inflation as the key driver.
- " "As we argued last week already, this week’s US inflation data for August are likely to be the key determinant of the Fed’s upcoming policy decision.
Sources
- Fxstreetlink