The greenback is still weighed lower after yesterday's FOMC meeting decision
The dollar is still struggling to find its footing after being knocked down by the a more dovish than expected Fed yesterday. With Treasury yields sent tumbling to lows not seen since early 2018, it's putting added pressure on the dollar since overnight trading.
The aussie and kiwi continues to gain against the greenback after data releases earlier today. A lower unemployment rate helped to fuel further gains in the aussie while New Zealand's quarterly GDP figures for Q4 met expectations to help give the kiwi a boost.
But if anything else, this has to do with short covering against the greenback as well with emerging market currencies also cheering the Fed's softer tone yesterday.
Risk sentiment remains largely muted despite the Fed's dot plots not showing any rate hikes this year as the FOMC's concerns surrounding the global economy is also weighing on equities as we saw in Wall Street overnight.
Expect focus to stay on Treasury yields in the sessions to come and that will be a key determinant for dollar weakness/strength this week as well.
