Dollar Extends Winning Streak, Though Momentum Hints at Waning Strength
| Action Insight Weekly Report 10-19-24 |
| Dollar Extends Winning Streak, Though Momentum Hints at Waning Strength |
Dollar continued its reign as the strongest currency for yet another week, bolstered by solidifying expectations around gradual and measured rate cut cycle by Fed. The rate cut from ECB provided some additional tailwind for the greenback. However, momentum behind the Dollar's rise remains tepid. Strong risk-on sentiment, coupled with sluggishness in U.S. Treasury yields, is capping further gains. Additionally, the potential for intervention from Japanese authorities has kept Dollar’s advances against Yen in check. Sterling ranked as the second-best performer this week, supported by mixed economic data from the UK that leaves BoE's policy outlook uncertain beyond the widely expected November rate cut. Notably, Pound resumed its uptrend against the weaker Euro, reaching its best level since mid-2022. Meanwhile, Swiss Franc ended the week at the bottom of the performance chart, with Euro not far behind. Australian Dollar also struggled, despite a brief bounce following stronger-than-expected jobs data. The lack of concrete measures in China's recent stimulus announcements continues to weigh on Aussie. Broader risk sentiment in the Asia-Pacific region, in China, Hong Kong, and Japan, is adding further pressure on the currency. |
AUD/USD Weekly Report AUD/USD edged lower to 0.6657 last week but recovered since then. Initial bias stays neutral this week for some more consolidations. Further decline is expected as long as 0.6758 resistance holds. Below 06657 will target 0.6621 first. Firm break there will confirm bearish reversal. However, break of 0.6758 will suggest that pullback from 0.6941 has completed and turn bias back to the upside. | |
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