Morning Preview: USD Makes a Late Charge
Rowan Crosby • 2 min read
It seems like a broken record, but it was another day and another ‘record’ high in US stocks. The SPX ground a little higher, while the USD made a late charge up.
There was some talk around that US President Donald Trump is taking a close look at Economist John Taylor to be the next Chairman of the Federal Reserve. Taylor is a known hawk, meaning he would be keen to see interest rates higher in a bid to stamp out too much inflation. If we get any traction that might mean more strength to come into the USD.
As I said yesterday, the USD looked like it was going to hold up at the 93.00 support level on the US Dollar Index (DXY) and sure enough, it did. Looking at the chart again, by holding that level, it might mean that we have room to push all the way up, through 93.50 to 94.00. If that was to happen that is bearish for the majors.
US Dollar Index (DXY) – 240 min Chart.
The majors all lost some lustre on Monday and there might be some more to come. Today I will be looking closely at the AUD as the RBA minutes are due for release. The AUD/USD gave back most of its gains from Friday and is again looking bearish.
AUD/USD: Bearish ahead of the RBA minutes.
USD/JPY: 112.00 has held up reasonably well. Perhaps the start of a bigger up move.
NZD/USD: Double top on the 4-hr chart. More downside to come.
Top Economic News
NZD – CPI
AUD – RBA Minutes
GBP – CPI
EUR – German ZEW & CPI
GBP – Average Earnings
USD – Building Permits
AUD – Employment
CHY – GDP
USD – Philly Fed
CAD – CPI & Retails Sales
USD – Existing Home Sales