Greenback Holds Firm in Subdued Trading Despite Growing Expectations of December Fed Cut
| Action Insight Daily Report 12-3-24 |
Greenback Holds Firm in Subdued Trading Despite Growing Expectations of December Fed Cut |
Trading in the forex markets were subdued in the Asian session. Low activity is expected to persist for the rest of the day due to a light economic calendar. Dollar remains resilient, supported by expectations that the incoming US administration will favor a strong currency. While the sharp drop in US Treasury yields has put some pressure on USD/JPY, the greenback has held its ground against Euro and other currencies. FOMC rate cut speculation has gained momentum following comments from Fed Governor Christopher Waller, who signaled preference to a December easing. Fed funds futures now indicate a 75% probability of a 25bps rate cut at the meeting, up from 66% yesterday and 59% a week ago. However, traders remain cautious as this week’s critical data, especially Friday’s non-farm payroll report, could shift market expectations dramatically. Overall for the week so far, Euro continues to face headwinds, ranking as the weakest major as weighed down by political instability in France. Swiss Franc and British Pound are the next weakest performers, highlighting overall softness among European currencies. Conversely, Dollar leads the pack, edging out Yen for the top spot, with the Canadian Dollar rounding out the top three. Australian and New Zealand Dollars are trading in middle positions.... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6441; (P) 0.6478; (R1) 0.6514; More... AUD/USD is staying in range above 0.6433 despite this week's dip. Intraday bias remains neutral first, and further decline is expected with 0.6549 resistance intact. On the downside, break of 0.6433 will resume whole decline from 0.6941, and target 0.6348 support next. However, firm break of 0.6549 will indicate short term bottoming, and bring stronger rebound to 55 D EMA (now at 0.6596). | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:45 | NZD | Terms of Trade Index Q3 | 2.40% | 1.80% | 2.00% | | 23:50 | JPY | Monetary Base Y/Y Nov | -0.30% | 0.20% | -0.30% | | 00:30 | AUD | Current Account (AUD) Q3 | -14.1B | -10.8B | -10.7B | -16.4B | | 07:30 | CHF | CPI M/M Nov | -0.10% | -0.10% | | 07:30 | CHF | CPI Y/Y Nov | 0.60% | | 15:00 | USD | JOLTS Job Openings Oct | 7.49M | 7.44M |
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