Sep 29, 2022, 08:00AM+7:00
VOT Research Desk
Analytical Viewpoint
The USD’s decline boosted APAC currencies. In comparison to the US dollar, both the Australian and New Zealand dollars increased.
The NZD outperformed its cross-Tasman counterpart, while the AUD/NZD pair decreased for a second day. After the USD/CNH surged to a record high level in overnight trading, the offshore Chinese Yuan plummeted. Today’s focus is on New Zealand economic data, with the ANZ activity forecast and business confidence for September due to be released at 0 GMT.
The DXY Index retreated to a significant trend line that has fluctuated since May between acting as support and resistance.
Although the pullback is overdue, the RSI and MACD oscillators on the DXY suggest that it may still have more area to move. In preparation for a signal line crossover, the MACD is currently decreasing and the RSI has fallen below its 70 level.
The June 2002 high or the 20-day SMA give concrete goals for bulls to reorganize, but if prices keep falling, some consolidation in the face of a bigger drop may be necessary.
