US Dollar, DXY, Asia-Pacific, Japanese Yen, Australian PMI, Technical Outlook – Talking Points
- Asia-Pacific markets face a risk-off open on Friday after US shares fall
- Australian PMI information factors to modest restoration as AUD/USD positive factors
- DXY Index stalls at trendline resistance simply shy of the June 2002 excessive
Friday’s Asia-Pacific Outlook
Asia-Pacific markets look set to increase Thursday’s risk-off tone at this time after US inventory indexes fell in New York. The 10-year Treasury yield hit its highest stage since February 2011 after rising 18 foundation factors. The Nasdaq-100 Index (NDX) fell 1.17%, bringing costs inside 4% from its 2022 low at 11,037.21. Gold was little modified, WTI crude oil climbed 0.66% and wheat costs rose for a 3rd day in Chicago.
The US Dollar DXY Index hit a recent multi-decade excessive earlier than trimming its positive factors to commerce little modified over the previous 24 hours. The Japanese Yen weighed on the DXY Index and rose in opposition to its main friends, benefiting from an intervention by the Ministry of Finance. Masato Kanda, Japan’s chief foreign money official, confirmed Tokyo’s intervention a couple of hours after the Yen weakened on the Bank of Japan’s coverage announcement that saved its super-loose coverage in place. Prime Minister Fumio Kishida, on Thursday, stated that on October 11, Japan would abandon its day by day arrival cap and allow visa-free vacationers to enter the nation.
A disappointing 12.5-bps hike from Taiwan’s central financial institution despatched USD/TWD to a recent 2022 excessive. In a divided vote, the Bank of England hiked by 50 foundation factors. The British Pound fell in opposition to the Greenback. The South African Reserve Bank (SARB) hiked its major repo price by 75 foundation factors to six.25% on Thursday. The South African Rand fell in opposition to the USD, though USD/ZAR’s bullish development stays intact. USD/CHF surged over 1% after the Swiss National Bank (SNB) introduced charges into optimistic territory by mountain climbing its price to 0.5%.
A September replace for Australia’s companies and manufacturing buying managers’ indexes (PMI) crossed the wires this morning. The manufacturing gauge rose to 53.9 from 53.8 in August, and the companies index elevated to 50.4 from 50.2, in line with the S&P Global information. The Australian Dollar rose modestly in opposition to the US Dollar and New Zealand Dollar in a single day, as merchants guess on a 50-bps price hike on the subsequent RBA assembly.
September 23 – Notable APAC Events
Taiwan – Consumer Confidence (SEPT)
Philippines – Budget Balance (AUG)
Thailand – Balance of Trade (AUG)
Singapore – Core Inflation Rate YoY (AUG)
US Dollar Technical Analysis
The DXY is at a key trendline from the May low, which has served as help and resistance since then. Prices are struggling to interrupt above the trendline because the June 2002 excessive approaches, which is inside 1% of the present stage. The Relative Strength Index (RSI) fell on the 70 stage, protecting the oscillator in impartial territory. A pullback would see potential help on the 20-day Simple Moving Average (SMA).
US Dollar (DXY Index) – Daily Chart
Chart created with TradingView
— Written by Thomas Westwater, Analyst for DailyFX.com
To contact Thomas, use the feedback part under or @FxWestwater on Twitter