Not a great day for the dollar
The weak ISM numbers put a squeeze on the US dollar, leading to a poor day right across the board. Even with risk aversion kicking in, the dollar slumped against the kiwi and Australian dollar. I think that paradigm can only continue in a limited move, as eventually the risk trade takes over.
The big event on the calendar today is the RBA decision. The market is pricing in just an 8% chance of a rate cut today but that rises to 54% at the next meeting, which is Feb 2.
Here's a look at the end-of-day FX moves.
What trade are you in? What trade are you thinking about?
