 After yesterday selloff triggered by Fed Chair Jerome Powell, Dollar turns mixed today. It did try to regain some grounds in early European session. But the attempt falters after weaker than expected inflation reading from the US. Focus will now turn to minutes of the November FOMC meeting. It's important to see whether it's a consensus that interest now is now "just below" or "long way from " neutral. Staying in the currency markets, Australian Dollar is so far the strongest one for today. The break of 0.7314 key resistance in AUD/USD suggests medium term bullish reversal. But AUD/USD has yet to pick up momentum above 0.7314 to confirm. Yen is the second strongest one for today, followed by Euro. Meanwhile, Sterling is the weakest one, followed by Swiss Franc. The Swiss is firstly weighed down by surprised GDP contraction. Also, rebound in emerging market currencies, like Turkish Lira, on Dollar weakness also reduced safe haven demand for Franc. Canadian Dollar is mixed as WTI crude oil broken below 50 but quickly recovered. Technically, Aussie's strength is worth a watch today. 0.7314 in AUD/USD is a level to watch. Also, we'll see if if EUR/AUD could sustain below 1.5519 support to confirm decline resumption. Sterling is another one to watch. GBP/USD might head back to 1.2725 temporary low. Also, EUR/GBP is eying 0.8939 resistance and GBP/JPY is heading back to 144.02 support. Break of these levels could prompt deeper selloff in the Pound. |
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