Dollar weakened on Yellen and China
Asian stocks rose on Wednesday following the advance at Wall Street after the Federal Reserve’s Chair Janet Yellen suggested the Fed won’t be in a hurry to raise interest rates. US dollar weakened as the bulls were disappointed by Yellen’s comments. USD/JPY fell to the 118.60 area.
Chinese HSBC flash manufacturing PMI rose from 49.7 to 50.1. A reading above 50 signals the industry expansion. AUD/USD has managed to break above resistance at 0.7850 and rose to the levels just below 0.7900. NZD/USD recovered to 0.7550 after dipping to 0.7420 on Tuesday.
USD/CAD slid from 1.2660 to 1.2450. Canadian dollar strengthened as the Bank of Canada’s Governor Steven Poloz said that last month’s cut in the benchmark interest rate provides time to see how the economy responds.
EUR/USD edged up and is trading in the 1.1350 area. The euro area’s finance ministers approved Greece’s reform plan and paved the way for an extension to the country’s bailout agreement. The plan should next be ratified by the national parliaments of the European states. No problems with that are expected as lawmakers and officials in Germany, Finland and the Netherlands have already said that they won’t block the package.