The US Dollar was mildly into positive territory this morning, with the US Dollar index (DXY) hovering around 95.35 at the time of writing. The DXY has managed to hold above the 20 DMA at 95.25, we’ve so far had mixed views coming from Fed Policymakers and the data has not been a clear determinant.
Despite the probability of a September rate hike may be low any hints coming out of next week’s meeting for a December one may send the USD in euphoria.
The euro is showing some potential with trend inidcators putting it bullish against the USD, GBP, AUD, and CAD amongst others. EURUSD is currently at 1.1243 with daily resistances set at 1.1278/1.1307. We expect the uptrend to be contained at the first daily resistance but corrective consolidation is expected at 1.1230/1.1215 for the day.
Overall market sentiment tended towards the negative as Asian equity indices slipped mostly lower. A decline in the price of oil seen Wednesday, and upcoming major central bank policy meeting from the Fed and the BoJ next week have left a cautious mood on inverstor sentiment. Even Europe is expected to open lower.
NZD 2Q GDP for the y/y figure was out at 3.6%, and Australian Unemployment ticked lower to 5.6% this morning. On the data front the limelight goes to the BoE rate decision and Asset purchases target, and later the US Advance Retail Sales number for August.
