US Dollar Outlook: DXY Index Eyes Retail Sales Data, Yields
2021-05-13 22:30:00
Rich Dvorak,
Analyst
US Dollar Outlook Hinges on Treasury Yields; Retail Sales & Consumer Inflation Expectations Eyed
US Dollar edged slightly lower on Thursday measuring by the broader DXY Index
Treasury yields pulled back and likely contributed to a slightly weaker US Dollar
Retail sales and consumer sentiment data on deck could rekindle inflation fears
The US Dollar lost upward momentum on Thursday following yesterday’s influx of strength. USD price action was largely mixed across the board of major currency pairs with USD/JPY downside offsetting USD/CAD upside. A slight pullback in ten-year Treasury yields likely weighed negatively on USD/JPY while sharply lower crude oil prices may have helped guide USD/CAD higher. On balance, the broader DXY Index closed practically flat with a very modest -0.06% decline.
5/13/2021 11:26:28 AM GMT | By Eren Sengezer
AUD/USD remains on the back foot following Wednesday s slump.
US Dollar Index stays in the positive territory below 91.00.
Eyes on Initial Jobless Claims and PPI data from US.
The AUD/USD pair suffered its biggest one-day loss since late March on Wednesday and seems to be having a difficult time staging a rebound on Thursday. As of writing, the pair was trading at its lowest level since May 4 at 0.7695, losing 0.35% on a daily basis.
Focus shifts to mid-tier US data
The US Bureau of Labor Statistics monthly report revealed on Wednesday that annual inflation, as measured by the Consumer Price Index, climbed to 4.2% in April from 2.6% in March. This print surpassed the market consensus of 3.6% by a large margin and triggered a rally in the US Treasury bond yields. Consequently, the greenback started to outperform its rivals and the US Dollar Index rose 0.67%.
4/16/2021 3:29:51 PM GMT
Plummeting US Treasury yields pressured the greenback and boosted risk appetite.
March Australian upbeat employment data hid a nasty secret.
AUD/USD has shrugged off its long-term negative bias, but bulls still have to wait.
Risk appetite took over financial markets this week, pushing AUD/USD firmly up. The pair topped 0.7760 heading into the weekend, trading a handful of pips below the level. Major currencies were once again driven by US government bond yields.
It’s all about yields, still
US Federal Reserve chief Jerome Powell repeated ad exhaustion that the central bank will maintain its ultra-loose monetary policy until actual data confirms an economic comeback and not just based on forecasts. However, something new on the matter surged this week. Chief Powell suggested that tapering would come “well before” considering a rate hike. The central bank has been buying $80 billion in Treasuries and $40 billion in mortgage-backed securities on a
Following
AUD/USD Weekly Forecast: Pressure mounts in the near-term, but bulls still has an ace up the sleeveANALYSIS |
3/12/2021 3:43:24 PM GMT
The Reserve Bank of Australia took action to curb the yields rally.
The US Federal Reserve is having a monetary policy meeting this week.
AUD/USD could fall towards 0.7620 but the long-term bullish picture persists.
The AUD/USD pair is has managed to post a modest advance this week, recovering well above the 0.7700 threshold. The greenback strengthened on the back of soaring government bond yields, but in the case of AUD/USD, the stronger dollar was partially offset by Wall Street reaching all-time highs. The Dow Jones Industrial Average and the S&P both hit records on Thursday, after US President Joe Biden signed the $ 1.9 trillion stimulus bill into law, granting more easy money to markets.