US DOLLAR STRENGTH SENDS AUD/USD PLUMMETING; NFP REPORT EYEDFX markets noticed some heightened exercise throughout Thursday’s buying and selling s
US DOLLAR STRENGTH SENDS AUD/USD PLUMMETING; NFP REPORT EYED
FX markets noticed some heightened exercise throughout Thursday’s buying and selling session pushed by an enormous inflow of US Greenback power. The broader DXY Index spiked 0.65% to its highest degree since 14 Might because the US Greenback felt shopping for stress throughout the board of main forex pairs. US Greenback power was notable towards the Aussie specifically with AUD/USD plunging 93-pips on the day.
AUD/USD worth motion trades nicely beneath the 0.7700-handle now, which seems to offer affirmation of the bearish head and shoulders sample we flagged two weeks in the past. This might counsel AUD/USD is primed to weaken additional, although it is going to possible be essential to maintain tabs of the elemental drivers catalyzing the transfer.
The Australian Greenback has confronted recent headwinds not too long ago amid dovish RBA rhetoric whereas the US Greenback has seen waves of demand because of mounting Fed taper threat.Not to say, IG Consumer Sentiment information on AUD/USD dealer positioning alludes to potential for extra follow-through to the draw back as nicely.
USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
Nonetheless, outlook for AUD/USD and the broader US Greenback possible hinges on the upcoming launch of nonfarm payrolls and the way the month-to-month jobs report sways the Fed taper debate. NFPs are scheduled to cross market wires Friday, 04 June at 12:30 GMT. As such, in a single day US Greenback implied volatility readings have perked up fairly a bit.
Notably better-than-expected NFP information would possible correspond with broad-based US Greenback power. Then again, if NFPs miss consensus forecast, the US Greenback might whipsaw again decrease as bears look to fade latest power. In the end, I will likely be holding a watch out for the path of Treasury yields as a positively-correlated bellwether to the place USD worth motion heads subsequent.
Maintain Studying – US Greenback Forecast: Inflation, Fed Taper Debate, Yields are Key
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception
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