Daily Morning Report 02.10.2017

The Australian and New Zealand dollars moved lower against their U.S. counterpart on Monday, as hopes for a rate hike and tax reform in the U.S. before the end of the year continued to support demand for the greenback.

AUDUSD slipped 0.20% to 0.7820, not far from last Thursday’s two-month low of 0.7798.

The dollar remained supported after Federal Reserve Chair Janet Yellen indicated last week that the central bank was sticking to plans for a third rate hike this year.

The dollar received an additional boost from fresh hopes for U.S. tax reform after the Trump administration outlined plans for a sweeping overhaul of the U.S. tax code last Wednesday.

Trading volumes were expected to remain thin with Australian markets closed on Monday for the Labor Day holiday.

NZDUSD declined 0.47% to trade at 0.7195.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.39% at 93.27, not far from Thursday’s one-month highs of 93.50.