The US dollar extends its reinforcement in a long reaction due to the Fed’s statement. That sends the AUD / USD to their new lowest position in a year. It is highlighted by the market participants. 

Meanwhile, BOJ let their interest rate is unchanged just like what people hoped. The USD has been extending its reinforcement to respond the Federal Reserve statement. 

For your information, that statement was made on Wednesday. The Bank gives a sign about the increase of two interest rates in 2023. That is also a time where another discussion will be made. 

It is especially about the obligation purchase reduction. A concern about the inflation increase and prediction for the quick job rising has been triggering the Fed shift so far. 

The Greenback Reinforcement is also Happened

The greenback reinforcement happened although the obligation result is decreasing gradually. The 10-year US treasury return has been declining to 1.50%. How about the stock market? 

Based on the data, the stock market is under the highest level. The AUD / USD is significantly moved. The decline of that pair reaches the 0.75. It has been moving  to its lowest level since December. 

That situation occurred although the employment number in Australia which is so incredible has been released since Thursday. Meanwhile, the EUR/USD took back the position in 1.19.

That pair was successfully reaching that condition after placing under that limit before. Elsewhere, the GBP/USD is still surviving to maintain a position in the level of 1.39.

The COVID Cases Still Affect the Market

It cannot be denied that some bad positions above are affected by the increasing cases of the coronavirus worldwide. A report showed that 11000 cases of COVID-19 and that was noted on Thursday. 

It was also the highest cases since the middle of February. The delta varian of this coronavirus continues to spread quickly. Now, the vaccine is giving for them who are more than 18 years old. 

The British retail sales are disappointing with the 14 percent decline happened in May. The Bank of Japan lets its policies are unchanged just like what most people hoped. 

It means that their interest rate is still in -0.10 percent. Meanwhile, the USD/JPY pair is floating around 110. That condition may be changed if a progress occurred in the forex market worldwide 

Gold also Becomes a Victim

It is a fact that a commodity like gold is also becoming a victim of the significant shift made by The Fed. The XAU/USD is declining under $1.800 and fail to recover so far. That is not good. 

Gold extends its bounce from the monthly lowest level in May to $1.785. That increases by 0.65% intraday along the trade happened on Friday. By doing that, the sellers do a little tracking. 

It is related to the S&P 500 futures sector and also the step back of the US dollar. It is done to review a consolidation around the lowest level near the multi-day situation. 

The recovery movement can be also related to the major support structure in a monthly graphic report. That was around the level of $1.765 – 70. However, some events must be noted as well. 

The America’s Treasury Result is Low

Based on the data, the US treasury result movement is so weak and the calendar seems really light ss well. It is added with the news released where it investigates the gold buyers.

It must be noted that the gold declines for the five days lately. It is caused by the concern related to the reduction of the Fed’s obligation purchase. The interest rate increases get their momentum. 

Elsewhere, the inflation expectation is so dark. It seems that they offer the middle scale bounce. However, the market participants will still maintain every progress happened.