It’s back to the drawing board for the dollar as the gains from Friday and early yesterday are falling short of reaffirming its credentials. USD/JPY in particular is trading back under 140.00 and that continues to put a bit of a drag on general dollar sentiment as of late.
Even the commodity currencies are seeing a decent bounce with AUD/USD up another 0.7% today, helped out by the surprise rate hike from the RBA earlier. The pair has held a defense at 0.6500 with NZD/USD also having resisted a drop below 0.6000 last week.
I’m not really a fan of the in-between that we are experiencing now with dollar pairs, so I’m on the sidelines in that regard.
Elsewhere, we also saw gold run into a test of its 100-day moving average once again and buyers stood their ground. The turnaround in Treasury yields yesterday was a timely one in favour of gold bugs and I’m still one to advocate buying on dips for gold, with some thoughts on that here.
Besides that, oil has quickly erased its initial gap higher from the surprise OPEC+ cut announcement over the weekend. That is highly disappointing for oil bulls with price now down another 0.3% to $71.68, effectively filling the gap. The 200-week moving average, now seen at $67.25, remains the key downside support level to watch though for oil.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.