USD upside momentum building again
The USD has continued to extend gains in the wake of Wednesday’s FOMC meeting, with the US currency gaining across the board on Thursday. In the G10, gains were most notable against the NOK and NZD, two higher yielding currencies which have been popular with investors, with a dovish Norges Bank message exacerbating weakness in the former and soft GDP having weighed on the latter. In contrast, the AUD held up a bit better on a relative basis despite a weak China flash PMI, suggesting the extensive short positioning in that currency may be finally helping to limit downside (though not enough to prevent another 1%+ drop in AUDUSD).
Read the full report: FX Daily
BNP Paribas