USD’s decline continued after US convention board client confidence unexpectedly fell. DXY was final at 100.49, OCBC’s FX strategists Frances Cheung and Christopher Wong notice.
Decisive break beneath 100.20 places 99.60, 99.10 in focus
“Elsewhere, markets had been driving on risk-on temper after China unleashed a slew of assist measures. Sharp good points in RMB not solely fuelled momentum in AXJs but additionally spurred good points in DM FX, together with AUD, EUR.”
“Each day momentum is flat whereas RSI fell. Interim double-bottom seems to be forming – we proceed to observe value motion. Resistance at 101.10 (21 DMA), 101.90. Help at 100.20levels (interim double backside). Decisive break places 99.60, 99.10 ranges in focus. This week, we watch preliminary jobless good points (Thu), core PCE (Fri).”
“Ought to core PCE unexpectedly rebound, then worries of second-round inflation might play up and USD might bounce. Other than Fedspeaks, there’s a slew of Fed officers talking this week, together with Powell’s pre-recorded speech on Thu.”
