USD Recovering? PPI Data Adds US Economic Risk Warning

<p>&nbsp;Focusing on Wednesday's trading yesterday was on the king of the US dollar currency when its movement pattern was observed after receiving a major impact following the inflation data of the United States (US) published last Tuesday.</p><p><br /></p><p>The US dollar was seen to recover slightly yesterday from the biggest decline that occurred in the period of 1 year, even when the US economic data published in the New York session yesterday was less encouraging.</p><p><br /></p><p>This slow recovery is seen to be supported by the rebound of the US 10-year treasury yield to 4.55%. While the dollar index hovers slowly below the 104.50 point level.</p><p><br /></p><p>However, this situation is not enough to ease the concerns of the market which still sees pressure on the US dollar with the expectation that further depreciation will continue.</p><p><br /></p><p>US retail sales data for October contracted 0.1% but slightly better than forecasts of -0.3%.</p><p><br /></p><p>Meanwhile, the US producer price index (PPI) data contracted 0.5% for October, becoming the biggest contraction since April 2020 that exceeded the forecast of 0.1%.</p><p><br /></p><p>The annual reading decreased from 2.2% to 1.3% and this is seen to be in line with the consumer inflation reading that has been published, giving an impression of a pattern of slower price increases.</p><p><br /></p><p>Factory business survey data in New York (Empire State Manufacturing) meanwhile rose to 9.1 points for November, recovering from the previous contraction reading.</p><p><br /></p><p><br /></p><p>Market sentiment is also seen to increase pressure on the US dollar following the reading of China's economic data yesterday which was quite satisfactory.</p><p><br /></p><p>This reduces the attraction of safe-haven currencies such as the US dollar when the market is in risk-on mode.</p><p><br /></p><p>Focus shifted in the Asian session this morning (Thursday) to Australian jobs data with job gains recorded for October of 55,000 higher than the forecast of 22,800.</p><p><br /></p><p>The unemployment rate rose from 3.6% to 3.7% as expected.</p><p><br /></p><p>In the New York session tonight, the market will watch US jobless claims data to gauge the number of individuals who claimed insurance last week.</p><p><br /></p><p>Commodity market developments, the crude oil market turned gloomy with price declines for both WTI and Brent benchmarks yesterday.</p><p><br /></p><p>US WTI oil fell around $76.50 per barrel while UK Brent oil fell below $81.00 per barrel.</p><p><br /></p><p>Gold trading, on the other hand, reduced some gains after the previous surge when the price fell $20 from the height of $1,975 reached to around $1,955 in the New York session yesterday.</p>