24 Quotes by John Kyriakopoulos

The price action of the last few days does suggest a potential exhaustion in the dollar's rally,

U.S. economic reports serve to remind investors that U.S. economic growth remains solid, and as long as this continues, writing the U.S. dollar off could prove a costly strategy.

As such, currency moves are being exaggerated as small lumpy flows meet low liquidity.

A report that Nippon Life may shift away from U.S. dollar bonds has also supported yen buying.

The Reserve Bank may shift to a very mild tightening bias which won't be enough to support the Australian dollar while the Fed is pushing up rates.

There is typically a bounce in such purchases and if this proves subdued this year, many investors will conclude that a stronger Japanese economy and rising bond yields has moderated Japanese investor appetite for foreign assets. This scenario would see the yen a lot firmer.

It plays to the risks of the Reserve Bank of New Zealand cutting rates earlier than its current track suggests.

It's more of the same, with the perception that carry trades are being unwound, and that Japanese bond yields rose further today probably added to that trend.

The news on the Australian economy has been far from upbeat. A benign consumer price index report will make the likelihood of another RBA rate hike disappear completely and this will potentially weigh on the Australian dollar.