AUD Rallies; Bond Yields Ease; Wall Street Stocks Mixed

<p>The
Dollar Index (DXY), a popular gauge of the Greenback’s value against a basket
of 6 major currencies, ended flat, at 106.58 (106.60). The US currency maintained
its gains versus its rivals ahead of this week’s Federal Reserve interest rate
decision.</p><p>Against
the Japanese Yen, the Dollar dipped to 149.65 at the close of trade in New York
from Friday’s opening at 150.37. The Yen gained on a rise in Tokyo’s Annual
Core CPI to 2.7% from 2.5% previously.</p><p>The
Euro (EUR/USD) eased modestly to 1.0560 from Friday’s opening at 1.0570. The
shared currency failed anew to break the 1.0600 barrier, trading to an
overnight high at 1.0597.</p><p>Sterling
(GBP/USD) dipped to 1.2120 against Friday’s 1.2130. In choppy overnight trade,
the British currency soared to 1.2163 highs before sliding back to its close. The
overnight low was at 1.2102.</p><p>Against
the trend, the Australian Dollar (AUD/USD) rallied versus the Greenback to
finish at 0.6335 (0.6325). Australia’s Q3 Producer Prices rose more than
expected to 1.8% against forecasts at 1.2%.</p><p>The
Dollar was mixed against the Asian and Emerging Market Currencies. USD/CNH
(Dollar-Offshore Chinese Yuan) edged higher to 7.3270 from 7.3230. The USD/THB
pair dipped to 36.10 (36.25).</p><p>The
10-year US Treasury yield dipped to 4.83% from 4.84%. Germany’s 10-year Bund
yield was last at 2.83% from 2.86% Friday. Australia’s 10-year bond rate closed
at 4.81%, down from 4.87% previously.</p><p>Other
economic data released Friday saw France’s October Consumer Confidence climb to
84 from 83. The US September Core PCE Price Index rose to 0.3% from 0.1%,
matching estimates.</p><p>US
September Personal Income dipped to 0.3% from 0.4% while US Personal Spending
rose to 0.7% from 0.4% previously. The US Michigan Consumer Sentiment Index fell
to 63.8 from 68.1 previously but beat expectations at 63.0.</p><p>·
AUD/USD
– Against the trend, the Aussie Battler grinded higher against the Greenback to
finish at 0.6335, up from Friday’s opening at 0.6325. In volatile trade, the
Australian Dollar jumped to an overnight high at 0.6368. The overnight low
recorded was at 0.6319.</p><p>·
USD/JPY –
Dollar Yen trading was also choppy. The Greenback soared to an overnight high
at 150.42 from its Friday opening at 150.37. The USD/JPY pair tumbled to a low
at 149.46. The rise in Japan’s Tokyo inflation report to 2.7% from 2.5% supported
the Japanese currency.</p><p>·
GBP/USD – Sterling
dipped to 1.2120 at the close of trade, little changed from its opening at
1.2130. In choppy trade, the British Pound saw an overnight high at 1.2163 while
the overnight low recorded was at 1.2102. There was no major UK data released
on Friday.</p><p>·
EUR/USD – The
shared currency dipped to 1.0560 at the close of trade, little changed from its
opening at 1.0570. Overnight, the Euro rallied to 1.0597, just short of the
1.0600 resistance level. The overnight low recorded was 1.0537.</p><p>On
the Lookout:</p><p>Today’s
economic calendar is light. Australia kicks off with its September Retail Sales
report (m/m f/c 0.3% from 0.2% – ACY Finlogix).</p><p>Germany
follows with its Flash GDP Growth Rate (q/q f/c -0.3% from 0%; y/y f/c -0.7%
from -0.2% – ACY Finlogix).</p><p>The
UK releases its September Mortgage Approvals (f/c 45k from 45.354k – ACY
Finlogix), and UK September Net Lending to Individuals (m/m f/c 0.5 billion
from 2.9 billion – ACY Finlogix).</p><p>The
Eurozone releases its October Economic Sentiment (f/c 93 from 93.3 – ACY
Finlogix) and October Consumer Confidence (f/c -17.9 from -17.9 – FX Street).</p><p>Finally,
the US releases its September Dallas Fed Manufacturing Index (no f/c, previous
was -18.1 – FX Street).</p><p>Trading
Perspective:</p><p>The
week ahead promises more volatility in FX culminating in the US Payrolls report
on Friday.</p><p>While
the Dollar Index (DXY) dipped a tad, the US currency maintained its bid. The
highlight for this week is the Federal Reserve’s rate decision following their meeting
(Thursday, 2 November).</p><p>The
FOMC is widely expected to keep its Federal Funds Rate unchanged at 5.5%.
Markets will be scrutinizing the FOMC Statement as well as Federal Reserve
President Jerome Powell’s words in his speech following the release.</p><p>Friday
(3 November) sees the release of the October US Jobs report. The US Non-Farm
Payrolls gain will be the focus, which at this time of writing is forecast to
slide to 182,000 from 336,000.</p><p>Because
of the relatively large difference, traders will be watching for revisions on
this number heading into Friday.</p><p>·
<a href="https://acy.com/en/market/audusd/" target="_blank" rel="follow">AUD/USD</a>
– While the Australian Dollar managed to grind higher
against the Greenback, expect any topside advances to be limited today.
Immediate resistance lies at 0.6360 followed by 0.6390 and 0.6420. On the
downside, look for immediate support at 0.6310 followed by 0.6280 and 0.6250.
Look for the Aussie to consolidate in a likely range today of 0.6300-0.6350.
Prefer to sell rallies.</p><p>(Source: <a href="https://www.finlogix.com/" target="_blank" rel="follow">Finlogix.com</a>)</p><p>·
<a href="https://acy.com/en/market/usdjpy/" target="_blank" rel="follow">USD/JPY</a>
– After climbing above the 150 Yen level on Friday, the
US Dollar retreated to finish at 149.65. On the day, look for immediate support
at 149.45 (which is the overnight low traded). The next support level comes in
at 149.15. Immediate resistance can be found at 149.95 followed by 150.25. Look
for the Dollar-Yen to trade in a likely range today of 149.45-150.45. Trade the
range.</p><p>·
<a href="https://acy.com/en/market/gbpusd/" target="_blank" rel="follow">GBP/USD</a>
– Sterling slid against the broadly based stronger US
Dollar to 1.2020 against Friday’s open at 1.2130. On the day, look for
immediate support at 1.2000 (overnight low traded was 1.2004). The next support
level lies at 1.1970. Immediate resistance for the British currency lies at
1.2150 followed by 1.2180 and 1.2210. Look for Sterling to trade a likely range
of 1.2070-1.2170. Trade the range, the preference is to sell rallies.</p><p>·
<a href="https://acy.com/en/market/eurusd/" target="_blank" rel="follow">EUR/USD</a>
– The shared currency eased to close at 1.0560 from
1.0570 on Friday. Look for immediate support at 1.0535 (which was the overnight
low traded). The next support level is found at 1.0505. On the topside,
immediate resistance can be found at 1.0600 followed by 1.0630. Look for the
Euro to consolidate in a likely range today of 1.0530-1.0630. The preference is
to sell Euro rallies.</p><p>Have
a top trading week ahead all, happy Monday</p><p>This content may have been written by a third party. ACY makes no
representation or warranty and assumes no liability as to the accuracy or
completeness of the information provided, nor any loss arising from any
investment based on a recommendation, forecast or other information supplied by
any third-party. This content is information only, and does not constitute
financial, investment or other advice on which you can rely.</p><p>This article was written by Michael Moran.</p>

This article was written by FL Contributors at www.forexlive.com.