USD Buyers Having Another Go, As US Markets Open for the Week
This week started in a quiet manner in terms of trading activity in the Asian and European sessions, with a slight tilt toward risk assets, which sent the USD on a slight retreat. Although as soon as the North American session started the USD started getting back up. The economic data this week is lighter compared to previous weeks, and it is with only three trading days due to a holiday. Today and Friday have no significant economic events on the calendar. However, tomorrow is expected to be busy, with the release of US retail sales data and Canadian Consumer Price Index (CPI) inflation figures.
Today’s noteworthy event is the BOC (Bank of Canada) senior loan officer survey at 14 pm GMT, although it’s not expected to have a major impact on the market. Additionally, there are no scheduled speeches from central bank officials.
The focus of today’s trading seems to be on concerns related to China and movements in bond yields. Currently, bond yields are slightly increasing, leading to a rise in the value of the US dollar. There has also been a recent decline in commodity prices over the hour or so, since the US markets opened.
From a technical perspective, market participants are closely watching the potential breakout in the USD/JPY currency pair. Earlier on this pair was retreating and slipped to 144.70s, but has reversed back up and has gained around 70 pips so far at it approaches 1.4550.
We were thinking about going long on USD/JPY since the bullish trend has been consistent here. Although, we decided to go long on the USD in other pairs, so we sold GBP/USD and AUD/USD earlier on, as well as Gold. Two of these trading signals have closed in profit already after this reversal. So, we remain longon the USD and will buy pullbacks lower.
AUD/USD Live Chart
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