Westpac foreign exchange news – 10 March

In this week’s market update, Robert Rennie Westpac’s Global Head of FX & Commodities Strategy, looks at the two key themes that have driven more volatile price action around the world – expectations of a Fed rate hike this coming week and rising inventory levels in some key commodity markets that have driven prices lower. Global bond markets have sold off, the US$ is stronger and crude oil has plunged. All this means that commodity currencies including the A$ and NZ$ have been hit hard, and Robert argues this weakness probably continues into next week’s FOMC hike.