US Dollar, USD, Fed, Powell, USD / JPY, Nakao, AUD, NZD, crude oil – talks
- The US Dollar maintained its position despite talk of a recession
- Associated with risk currency affected, but stock markets remained intact
- Today, the Fed chairman will testify again.Insick he moves USD?
The US dollar strengthened after the testimony of Fed Chairman Jerome Powell in Congress.
He acknowledged that a recession was “definitely possible” and said that recent events “have been the achievement of what we want, which is 2% inflation and a still strong labor market”.
He also said the chances of achieving a soft landing for the economy were “very challenging”. Treasury bond yields were lower across the curve.
All talk of a recession has led to growth-related currencies declining with Australians and Australians Kiwi hit the hardest.
Shares of APAC today are to some extent more in the green, with the notable exception being the Kosdaq growth-sensitive index, which fell about 2.5%.
Elsewhere, USD / JPY after went below former Japanese Deputy Finance Minister for International Affairs Takehika Nakao said the current level ena was not good for Japan’s economy. He said the prospect of intervention “should not be eliminated”.
Looking ahead, a number of European PMIs are coming out, as well as a number of ECB rapporteurs. Fed Chairman Powell will also testify later.
The full economic calendar can be viewed here.
US Dollar Technical Analysis
The US Dollar Index (DXY) remains above the uptrend line and above the 21-, 55- and 100-day simple moving averages (SMA) but below the 10-day SMA.
This may indicate that the bullish impulse is suspended. If the price crosses the 10-day SMA again, a bullish momentum may unfold. All SMA periods have a positive gradient and this can support a bullish momentum.
Resistance may be at a recent peak of 105.79. On the other hand, support could be at last week’s low of 103.42 or further down to a low of 101.30 in May.
— Written by Daniel McCarthy, strategist for DailyFX.com
To contact Daniel, use the comments section below or @DanMcCathyFX on Twitter