The USD Bounces in a Quiet Day

The USD rose yesterday but overall it was a quiet trading day to start the week.

Equities fell away as much of the positive news from the US-China trade deal appears to already be priced in.

Risk assets did see some strength, led by the AUD and NZD which were the two best performers on the session.

A quick overnight snapshot of key markets:

• Dow -0.8% S&P 500 -0.4% Nasdaq -0.2%
• Europe: Stoxx 50 +0.2% FTSE +0.4% CAC +0.4% DAX -0.1%
• Spot gold -0.5% to $US1287.58 an ounce
• Brent crude +0.1% to $US65.14 a barrel
• US oil +0.3% to $US55.98 a barrel

The USD Outlook

The DXY remains below the key resistance level at 97.00 and has bounced off the 96.50 support.

Key support remains at 96.00, with secondary levels at 95.00-95.50. These look some way off at the moment.