Dollar steadies but is the relief just temporary?

<p>The dollar is surprisingly finding some steadier footing in European trading now, with USD/JPY itself up 0.15% to 147.70 on the day. That's quite a modest recovery from the low of 146.90 in Asia trading. Meanwhile, EUR/USD is also down 0.1% to 1.0980 and AUD/USD down 0.4% to 0.6620 currently. The latter is not benefiting from softer inflation data earlier today <a href="https://www.forexlive.com/news/australian-monthly-cpi-for-october-2023-49-yy-vs-expected-52-20231129/" target="_blank" rel="follow">here</a>.</p><p>The kiwi is still leading gains on the day but has dropped from 0.6200 to 0.6150 against the dollar, after having been bolstered by more hawkish RBNZ prospects earlier <a href="https://www.forexlive.com/centralbank/the-risk-of-an-rbnz-rate-hike-is-real-20231129/" target="_blank" rel="follow">here</a>.</p><p>The light bounce in the dollar comes despite softer bond yields once again while equities are starting to pick up some steam after two days of tepid momentum. I wouldn't be so quick to say that the dollar has stopped the rot. If anything else, this looks to be just a bit of a breather unless the situation changes up in the bond market.</p><p>All else being equal, I reckon the selling could hit hard once again when we get to US trading later.</p>

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