Dollar strengthens against yen and Canadian dollar, while Aussie dollar manages to recoup losses
Markets are awaiting today’s CPI reading, with the US dollar making some headway in early trading.
USD/JPY resumes its advance
The USD/JPY drop on Monday was cancelled out by gains on Tuesday that could put the price on course for a move to new highs for the year.
The rally from the July lows remains firmly intact, and continues to push on to a new higher high for the longer-term bounce from January. The recovery above ¥146.00 this week puts the buyers in charge once again and then points to a fresh attempt to push towards the highs around ¥150.00 last seen in October last year.
So far sellers have been unable to wrest control from the buyers, and it would need a close back below ¥145.50 to suggest a more substantial short-term retracement was at hand.
AUD/USD tries to continue its recovery
The AUD/USD pair has managed a limited rebound from the lows of last week, and further gains may see it push towards the $0.65 level.
A softer consumer price index (CPI) print in the US this afternoon might provide the basis for further gains, with a bigger rally targeting the declining 50-day simple moving average (SMA).
A reversal back below $0.64 would indicate that the sellers have reasserted control and a drop below the September lows could be in the offing.
USD/CAD losses slow
The past three days have seen the USD/CAD price reverse course after the early September rally.
A close below the C$1.35 level would mark a more bearish move, and might then see the price head back towards C$1.34. This might then indicate that a deeper move lower towards the July lows was in play.
A rally back above C$1.36 might suggest that the buyers have reasserted control, and a move back to C$1.3694 and higher was beginning.
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