Graphic Rewind: US Dollar Finds Plenty of Short-Term Excitement
- AUD/USD declines on RBA worries over the Aussie
- UK PMI improvement sends the Pound higher
- Fed’s Rosengren’s comments may have moved US Dollar higher
A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:
US Dollar 15-Minute 12:00 11/04 to 12:00 11/05 EST
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The Dow Jones FXCM Dollar Index saw a small rise and then a temporary dip before finding its way back to Tuesday’s opening level.
An RBA rate decision was accompanied by comments worrying about the elevated Aussie exchange rate. The Forex related worries sent the Aussie lower against major pairs like the US Dollar and accounted for the USD’s mid-Tokyo run higher.
Then, in the London session, the UK PMI for services in October significantly beat a previous estimate and sent the Pound higher against major pairs like the US Dollar. But, those USD loses were erased during a spike at the beginning of the NY session, and we were again left unsure if the rally was connected to Fed comments. Voting Fed member Rosengren said today that the Fed should be attentive to possible costs associated with QE.
Ronsengren’s hawkish comment may have surprised markets and moved the US Dollar index higher, or the move may have just been a correction of earlier losses. Either way, the greenback move higher was further helped by a US ISM for non-manufacturing beat.
Charts created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to email@example.com .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.