US Dollar, US Dollar, Fed, Powell, US Dollar/Japanese Yen, Nakao, Australian Dollar, New Zealand Dollar, Crude Oil – Talking Points
- The US dollar has held on despite talk of a recession
- risk related Currencies But the stock markets were not affected
- The Federal Reserve Chairman will testify again today.WWill moving American dollar?
The US dollar has stabilized in the wake of Federal Reserve Chairman Jerome Powell’s testimony to Congress.
He admitted that a recession is “definitely a possibility” and said that recent events “have made it difficult to achieve what we want, which is 2% inflation and a still strong job market”.
He also said the chances of a soft landing for the economy were “very tough”. Treasury yields were lower across the curve.
All the recession-related talk sent growth-related currencies lower, with the Australian and New Zealand dollars being the hardest hit.
Crude oil has been sent for filling, the WTI contract is close to $104 while the Brent contract is below $110. Gold is flat, just above $1,830 an ounce.
Most Asia Pacific stocks are in somewhat green today, with the notable exception being the growth-sensitive Kosdaq Index, which is down about 2.5%.
Elsewhere, the USD/JPY fell afterwards Former Japanese Deputy Finance Minister for International Affairs Takehiko Nakao He said that the current level of the yen is not good for the Japanese economy. He said the possibility of intervention “should not be cancelled.”
Looking ahead, a series of European PMIs are coming out as well as a number of ECB speakers. Fed Chairman Powell will also testify again later.
You can view the full economic calendar over here.
US dollar technical analysis
US Dollar Index (DXY) remains above the ascending trend line and above 21, 55 and 100 days simple moving averages (SMA) But below the 10-day simple moving average.
This may indicate that the bullish momentum is temporarily halting. If the price crosses again above the 10-day simple moving average, bullish momentum may unfold. All SMAs have positive slope and this may support the bullish momentum.
Resistance may be at the last high at 105.79. On the downside, support could be at last week’s low at 103.42 or even lower at May’s low at 101.30.
Schedule cread in TradingView
— By Daniel McCarthy, Strategist for DailyFX.com
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