简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The US Dollar rallied on Wednesday as markets digested rosy US retail sales data after a red-hot CPI print. Is the Greenback readying to reverse more of its winter 2022 drop?
Asia-Pacific Market Briefing – US Dollar on The Move
The US Dollar rallied about 0.5% on Wednesday, with the DXY index closing at its highest since January 9th. A model that I built outlining the path ahead for the Chinese Yuan correctly showed that back in the middle of January, CNH was getting overbought. Since then, the latter has weakened back into the anticipated margin of error. Still, further gains might be in store for the Greenback.
The US Dollar continued climbing in the aftermath of yesterdays hotter-than-expected local CPI report, which opened the door for the Federal Reserve to continue its hawkish policy stance. Markets continued pricing out once-anticipated rate cuts towards the end of this year, pushing up front-end government bond yields.
Over the past 24 hours, traders had more economic data surprises to digest. US retail sales unexpectedly gained 3.0% m/m in January. Economists were looking for a 2.0% rise. Meanwhile, homebuilder sentiment also surprised higher in February, climbing the most since the summer of 2020. For the US Dollar, it also didnt hurt that UK CPI clocked in softer-than-expected in January, denting the British Pound.
Heading into Thursday‘s Asia-Pacific trading session, Wall Street was able to shrug off what retail sales data could mean for the Fed, focusing on a resilient economy. As such, sentiment could remain relatively upbeat. All eyes turn to Australia’s jobs report in the wake of increasingly hawkish RBA policy anticipation. Upbeat data could further reinforce this, offering a boost to AUD/USD.
US Dollar Technical Analysis
On the daily chart, DXY continues to make upside progress in the aftermath of a bullish Rising Sun candlestick pattern. Prices closed above the 20-day Simple Moving Average (SMA), but remain under the 23.6% Fibonacci retracement level at 104.11. A confirmatory push above the latter could open the door to extending recent gains and reversing the downtrend from the end of last year.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.