Morning Preview: USD Falls as RBA Statement in Focus
Rowan Crosby • 1 min read
There was a bit of action in trade during the US session, with stocks feeling some heat along with the USD. It’s been a quiet week for the most part, with very limited economic data to push the majors around. As such we’ve been heavily focused on the progress of the USD, which has been up and down all week.
On Thursday, we got some life back in the greenback, however, it was all downhill. More controversy around the Trump Tax plans hit the markets a bit and that caused some strength into the majors versus the USD.
We saw the USD/JPY pullback from the highs and the Euro managed to gain some ground. In this morning's Asian session, the calendar remains quiet, however, there is a statement on monetary policy due out from the RBA. So the AUD will be in-play early.
Looking at the US Dollar Index (DXY) we can see that the USD has taken a tumble. We were sitting right on resistance and there simply wasn’t enough of a fundamental driver to push us higher. 94.50 has been a good support level to date, so this might be an opportunity to be long the dollar in the various major.
Friday is Veterans Day in the US and that has the potential to limit volumes and moves as we close out the week so keep that in mind. Shain has mentioned what that might entail for markets.