Dollar keeps the advance from yesterday going

<p>The greenback managed to reestablish itself in trading yesterday, with the euro softening after a weak set of PMI data. The run is continuing today as equities are looking troubled while Treasury yields are also slightly higher. 10-year yields are up 2.8 bps to 4.867% and that is helping to keep the dollar underpinned, with USD/JPY continuing to hover just below 150.00:</p><p>Now, there is a significantly large set of option expiries for the pair due on Friday at the 150.00 mark. However, that might not even get a chance to factor into play if we do see a psychological break of the figure level in the sessions ahead – that is if Tokyo decides not to draw a hard line on any further yen weakness.</p><p>But even outside of USD/JPY, the dollar is finding itself in a good spot with EUR/USD down another 0.2% to 1.0570 and GBP/USD down 0.3% to 1.2120 on the day.</p><p>The Australian dollar was the top performer in Asia but has slumped in European trading, with AUD/USD now down 0.3% to 0.6335 after having traded to near 0.6400 earlier in the day. The downside channel <a href="https://www.forexlive.com/news/aussie-the-only-notable-mover-as-we-get-into-european-morning-trade-20231025/" target="_blank" rel="follow">here</a> is still the key thing to watch for the pair, even if traders are looking to step up bets on a RBA rate hike next month.</p><p>If anything else, keep an eye out on the 5-year Treasury auction coming up later today. That could yet jolt markets a fair bit more before the end of the day.</p>

This article was written by Justin Low at www.forexlive.com.