USDJPY
The yen rose first yesterday, hitting a daily high of 108.05 and falling as low as 108.66, as the market generally waited for guidance after the Fed announced its interest rate resolution. The FOMC committee began its two-day meeting on Tuesday and issued a policy and statement on interest rates on Wednesday local time. Interest rates are widely expected to remain unchanged at 2.25% and 2.5%, but pigeon talk will be released. But if the Fed is expected to let the dollar weaken the yen, the cost of hedging these large amounts of overseas assets will rise, adding to investor tensions about a higher yen, Japan, the largest country with the largest intercountry asset investment, is expected to strengthen the dollar if it is expected to let the dollar weaken the yen. In addition, there was unexpected trade news yesterday when US President Trump said in his Twitter that he had communicated a good message with Chinese President Xi Jinping to confirm that the meeting with China would be extended at the G20 summit in Japan next week, and that negotiations between China and the United States would soon resume. Concerns about trade tensions have eased, market risk appetite has improved, safe-haven currency, the yen, has been sold off by investors and the yen has fallen after news of calls between China and the United States flowed out. However, investors are more cautious before the Fed`s interest rate resolution, and the market is not expected to fluctuate much until then. From the technical point of view, the yen is in the consolidation stage in a short period of time, blocked in the 108.80 line, if the breakthrough, further probe 23.6% Fibonacci withdrawal position 108.90, the lower support level is 107.80 integer level.
AUDUSD
While many currencies held steady on the eve of the Fed meeting, the Australian dollar continued to fall, hitting a low of 0.6830 yesterday at its lowest level since January 3, as the European market began to gradually recover its day`s decline. The RBA released minutes during the Asian session yesterday, saying the labour market would "particularly important" decide to relax further in the face of persistent low inflation, arguing that a cut in interest rates in June would help reduce spare capacity in the labour market; Cutting interest rates is not only a policy choice for unemployment, but also lower interest rates will devalue the Australian dollar and reduce the burden on household debt, stimulating economic as a whole. The RBA believes lower interest rates will not increase borrowing risk and inflation, although idle capacity in the labour market, constraints on inflation and salary growth forecasts, and weakness in the housing market will continue for some time. It can be seen from the RBA`s speech that it is an inevitable trend to cut interest rates at the rate meeting in July, with the market focusing more on whether interest rates will be cut to 1 percent at the August meeting and whether the pace of rate cuts will accelerate further. Australia`s economic data also supported the tone of the central bank`s interest rate cut, with the Australian consumer confidence index, released yesterday, falling slightly from the previous value, while Australia`s national house price index fell quarter-on-quarter and in the same quarter, further confirming the weakness of the real estate market. After the last Australian central bank interest rate resolution, with the dollar weak Australian dollar supported, if the Fed interest rate resolution releases hawkish comments, a stronger Australian dollar will inevitably lead to a downward trend in the Australian dollar. From a technical point of view, the Australian dollar has fallen below the key resistance level of 0.6900 to a new low, further supporting the bearish pattern, with the upper resistance level of 61.8% back to 0.7019.
EURUSD
The euro rose to 1.1242 in the Asian session yesterday, but then double fundamentals weighed on the euro, which plummeted to a intraday low of 1.1180. European Central Bank President Draghi released pigeons yesterday saying the central bank is committed to stabilizing prices and that more rate cuts are one of the central bank`s tools, and said there is plenty of room for the QE and that additional stimulus will be needed if the outlook does not improve. Mr Draghi also hinted that economic data could remain weak in the coming quarters. After the ECB`s last interest rate resolution, markets doubted that the next step might be to cut interest rates, and Mr Draghi`s comments made it clear that the ECB`s dovish position. After the news flowed out, the yield on German 10-year bonds widened to-0.272 percent, a record low, and the euro continued to plummet by more than 40 points, falling below the 1.1200 mark. Of the subsequent economic data, the eurozone CPI recorded 1.2% in May from a year earlier, the lowest level in a year; the CPI recorded 0.1% in May from a month earlier, down from 0.7% and 0.2% in the previous month; the ZEW economic boom index in June in the euro zone recorded-20.2, much lower than the previous value-1.6; and the ZEW economic sentiment index in June in Germany recorded-21.1% much lower than the previous value-2.1%. The sharp drop in the economic sentiment index indicates a sharp deterioration in the euro zone, particularly in Germany, and an increase in uncertainty about global economic growth, further confirming the reasons for the ECB`s dovish position. From the technical point of view, the euro 23.6 per cent withdrawal level of 1.1215 was blocked, and the lower support level was 1.1160.
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