The US Dollar and US Treasury bond yields are experiencing an upward trajectory, spurred by the recent passage of the Republican Budget plan in the US House. This budget plan is set to advance former President Donald Trump's tax policies, contributing to this financial upswing. With these developments, market analysts are speculating on a potential rate cut by the Reserve Bank of Australia (RBA), further impacting global markets.
The strengthening of the US Dollar is placing pressure on various currencies and commodities. In Asian trading, the USD/JPY pair is extending its rebound, approaching 149.50, while the AUD/USD pair remains subdued below 0.6350. This is exacerbated by the weaker-than-expected Australian Construction Output and monthly CPI data, which have failed to meet forecasts.
Cryptocurrencies are also feeling the heat amid renewed demand for the US Dollar. Ethereum and Ripple have seen declines of nearly 11% and 12%, respectively. Meanwhile, Bitcoin's price is hovering around $88,500 as of Wednesday, having reached a low of $86,050 earlier in the week.
These market movements underscore the risk-off flows and heightened demand for the US Dollar as investors seek safer assets amid economic uncertainties. However, it is crucial to note that this article is not intended as investment advice. Neither the author nor FXStreet are registered investment advisors, and the opinions expressed herein do not necessarily reflect those of FXStreet or its advertisers.