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Dollar steadies as investors eye the Fed amid oil jump

AUD/USD fell 0.4% to 0.6940 after softer Australian CPI reduced expectations for the next RBA rate hike.

Reported · Written up by our desk · Major Pairs

A risk-averse session that followed another sharp drop in Asian stocks carried into European trading, with attention shifting to US policy signals and market volatility around the Strait of Hormuz.

Iran rejected an Oman proposal on joint management of the Strait of Hormuz, and threats by the Houthis tied to Red Sea shipping supported higher crude prices. WTI rose 5.0% to $83.20, while the US dollar was largely little changed versus major currencies.

In focus for direction were expectations around the next Fed meeting. S&P 500 futures were up 0.2% and Nasdaq futures gained 0.3%, while 10-year Treasury yields edged up 2.6 basis points to 4.63%.

In currency markets, the Australian dollar lagged after softer CPI data earlier in the day, with the selloff reflected in AUD/USD falling 0.4% to 0.6940. Gold was slightly higher, up 0.1% to $4,030.

Latest closeGold $4,023.80 ▼1.2%|WTI crude $81.23 ▼1.7%|S&P 500 7,428.78 ▲0.2%

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