The USD Running Higher, Reverses Losses Against Euro and AUD
The USD is firm, gaining versus major currencies, especially against the Aussie that's now peaking. Revival stems from the Reserve Bank of Australia's reiteration that the country may take years before inflation rises and full employment. These comments saw the AUD crater as USD bulls flew back in a reversal trade.
Presently, the U.S. is in a state of indecision. Analysts are watching several economic data before determining. Presently, the stimulus package is meandering its way through the reconciliation process. Central bank officials are confident that the distribution of funds won't impact inflation in the long-term. Already, despite exaggeration, the recent CPI readings were underwhelming. Combined with a weaker NFP report and more citizens claiming weekly jobless claims, the U.S. labor situation looks fragile. In the meantime, worse forecasts in Australia and mixed data in Euro allow the USD to stand out in a reversal trade supportive of the greenback.
Impact on the USD:
Bullish. After weeks of optimism and deflating fundamentals, the USD bulls are now back in contention. Candlestick arrangement in higher time frames against the majors favors buyers in short to medium term.
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