Daily Morning Report 23.08.2017

The Australian and New Zealand dollars moved lower against their U.S. counterpart on Wednesday, as investors continued to focus on the upcoming Jackson Hole summit due to begin on Thursday.

AUDUSD slid 0.30 % to 0.7888.

Traders were looking ahead to this week’s annual meeting of top central bankers and economists in Jackson Hole, Wyoming, where the heads of the U.S. and European central banks will be making keynote speeches.

Investors are especially awaiting speeches from Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi on Friday, though neither is expected to announce new policy messages.

Political tensions in Washington also remained in focus, as ongoing uncertainty over the economic agenda of U.S. President Donald Trump and doubts that the Federal Reserve will deliver a third rate hike this year have fed into recent dollar weakness.

At a rally in Arizona on Tuesday, Donald Trump said he would be willing to shut down the government in order to get the funding needed for his proposed wall along the U.S.-Mexico border.

Meanwhile, NZDUSD retreated 0.71 % to trade at 0.7226, not far from a six-week low.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 93.46.