Dollar Tops Weekly Performance But Next Move Uncertain, Aussie Suffers
| Action Insight Weekly Report 11-12-23 |
| Dollar Tops Weekly Performance But Next Move Uncertain, Aussie Suffers |
Dollar emerged as the best performer last week, fueled by hawkish remarks from Fed Chair Jerome Powell. The greenback's surge raises questions: is this merely a recovery from recent losses, or the beginning of a new uptrend? While Dollar gains support, rising risk-on sentiment in the markets seems to limit its ascent. On the other hand, the potential for a bounce in treasury yields could bolster Dollar's position. The tug-of-war between bullish and bearish forces could continue, and it remains uncertain which one will ultimately prevail. Conversely, the Australian Dollar surprisingly ranked as the week's weakest performer, despite RBA's hawkish rate hike and thawing diplomatic relations with China. This unexpected turn could be attributed to growing concerns over China's economic struggles, a sentiment echoed in the underperformance of Hong Kong stocks and Copper. Elsewhere in the currency markets, Swiss Franc and the Euro closed the week as strong contenders, trailing closely behind Dollar in terms of performance. New Zealand Dollar didn't fare much better than Aussie, ending the week as the second weakest, closely followed by Japanese Yen. British Pound and Canadian Dollar showed a mixed performance amidst these market dynamics. |
AUD/USD Weekly Report AUD/USD's steep decline last week argues that rebound from 0.6269 has completed at 0.6521. Initial bias remains mildly on the downside this week for retesting 0.6269 low. On the upside, above 0.6390 minor resistance will turn intraday bias neutral first, and bring consolidations, before staging another fall. | |
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