Greenback barely on the backfoot, US CPI knowledge eyed

The buck is barely decrease on the day however it’s nonetheless early to be deciding its destiny as markets are eyeing the US CPI data to come back later. So, I would not look an excessive amount of into the early strikes however let’s no less than check out the technicals. USD/JPY is down 0.5% to 145.45 at present however stays caught in between its key day by day shifting averages:

The vary between the 100-day (crimson line) and 200-day (blue line) shifting averages is moderately giant, with the previous at 147.55 and the latter at 142.41 at present. However that appears to be the place worth motion is sitting at, after having bounced off the 200-day shifting common and 38.2 Fib retracement stage to maneuver again above 145.00 on the finish of final week.

The BOJ concerns have additionally made issues rather less clear since Ueda’s feedback final week, including to the squeeze in lengthy positions amid the retreat in November.

As such, there’s nonetheless lots to play for this week with such a spread for worth motion in USD/JPY in the mean time.

In addition to the yen, the opposite two first rate gainers as we speak are the aussie and kiwi. AUD/USD is up 0.4% to only beneath 0.6600 however is pushing again above its 200-day shifting common (blue line) at 0.6574 on the day.

There was loads of pushing and pulling occurring within the pair as of late however merchants shall be hoping for extra readability this week. The motion in and across the 200-day shifting common highlights some indecision for now. Nonetheless, if there’s scope for a clear break in worth motion, that must be one which has room to run within the larger image.

To the draw back, the 0.6500 stage and 100-day shifting common (crimson line) at 0.6461 shall be ones to observe. As for the upside, it is going to be the current highs close to 0.6676-90 being the primary hurdle earlier than doubtlessly speaking in regards to the June and July highs close to 0.6900.