AUD is the strongest. USD slumps.
The AUD is the strongest currencies. The AUD benefited early on from much better employment report. The USD slumped on the back of March data in the form of Housing Starts and Initial claims coming out weaker than expectations. The Philadelphia fed index was marginally higher but still near lower levels
Fed officials including Jeffrey Lacker, Dennis Lockhart, Stanley Fischer, Loretta Mester and Eric Rosengren all spoke today.
- Rosengren said the 1st quarter showed that the US is not ready for an interest rate increase. He is fairly patient on rates.
- Mester said she expects liftoff relatively soon, if growth regains momentum and that an early liftoff can ensure further rate rises are gradual.
- Fischer said demand is pretty weak but expects inflation to rise toward 2% over couple years. Expects pickup in growth after Q1. See some signs of wages beginning to pick up. Rate rises depend on how economy develops.
- Lockhart said he sees heightened uncertainty about US economy's tract and that inflation continues to be soft.
- Lacker said fed widely expected to raise rates this year. US within band of natural unemployment rate
Below is a snapshot of the % changes for the major currencies vs each other today.
