USD/JPY Bounces Back Amid Defensive BoJ Talks and US GDP Data
The USD/JPY pair has been in a three-day downtrend and is currently trading near 133.50. The Bank of Japan (BoJ) officials have been pushing back the need to alter Yield Curve Control (YCC) and favoring an easy money policy. This could weaken the yen in the long term, but for now, it has been a defensive measure. The recent passage of the “Limit, Save, Grow Act” by the US House of Representatives has caused some market fears and could weigh on the yen pair ahead of the US Q1 GDP.
AUD/USD Sinks as RBA Maintains Neutral Policy Stance
The AUD/USD pair is currently in a bearish trend after breaking down from an Inverted Flag chart pattern. The consistently declining Australian Consumer Price Index (CPI) indicates that the Reserve Bank of Australia (RBA) will keep interest rates steady further, which may continue to pressure the Australian dollar.
Daily Market Update: U.S. Stocks Mixed on Tech Strength, Weak Economic Data, and Debt Ceiling Wrangling
The mixed performance of U.S. stocks on Wednesday reflected the strength of the tech sector, weak economic data, and ongoing wrangling over the debt ceiling in Washington. Crude oil prices fell due to fears of an economic downturn, and Bitcoin and Ethereum had a volatile day of trading. Benchmark 10-year Treasury yields rose, while yields on one-month bills tumbled ahead of a possible vote on the U.S. debt ceiling. Spot gold dropped slightly.