Forex News
Today's release of a range of US economic data caused the US dollar to fluctuate sharply.
Japan is believed to have injected over 50 billion USD to support the yen exchange rate through multiple rounds of intervention.
Federal Reserve Chair Jerome Powell dismissed the possibility of a rate hike but also refrained from indicating a clear path for a rate cut. Consequently, the US dollar weakened.
USD/JPY reached its daily high at 160.23 and then plummeted to 155.04 within about 4-5 hours.
The PCE report confirmed stronger-than-expected inflationary pressures in the US, boosting the US dollar ahead of next week's FOMC meeting.
The Bank of Japan's policy meeting outcome has left many disappointed, leading to renewed selling of the yen.
Economic data signals slower growth in the US economy, yet inflation pressures remain unexpectedly high.
Despite persistent warnings from Japanese officials about potential currency intervention, USD/JPY climbed to its highest level since the mid-1990s at 155.17 in Wednesday's New York session.
Australian inflation data released this morning pushed back expectations for a Reserve Bank of Australia (RBA) rate cut from September to November, bolstering AUD/USD.
Several upcoming agendas could serve as stronger catalysts for the US dollar and major pairs compared to yesterday's PMI data release.
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