Author name: Editor

AUD/USD remains range-bound after rebounding from May lows, struggling to decisively break resistance near 0.6700 amid mixed sentiment on US rates and China’s economic outlook. Momentum is flat with key support at 0.6580 and resistance around 0.6703. Traders should watch Federal Reserve signals and Australian data for clues on the next directional move. Original analysis courtesy of ActionForex, with supplementary insights from DailyFX and ForexLive.

Global central banks trimmed holdings of the Japanese yen and Australian dollar significantly in Q1 2024, according to MUFG. This shift reflects changing confidence and portfolio rebalancing amid evolving economic and monetary conditions. Meanwhile, the US dollar’s share of official reserves increased, highlighting its continued dominance.

Global FX reserve managers sold significant amounts of Japanese yen and Australian dollars in Q1 2024, according to MUFG’s analysis of IMF COFER data reported by Justin Low (ForexLive). This marks the largest quarterly net sales of JPY and AUD on record, with proceeds largely redirected into US dollars—pushing the USD share to its highest since 2014. Euro holdings remained stable, while smaller gains were seen in CHF and CAD. These moves reflect evolving central bank strategies focused on yield, risk, and diversification amid a shifting macro landscape. Traders and policymakers should closely monitor these trends for future currency rotations.