The US Dollar (USD) turns flat to a touch softer on Friday with some profit-taking after steep rallies against many major G20 currencies . The slight retracement comes on the back of Chinese economic data and more details on the stimulus package the Chinese government is rolling out. With Chinese deposit being cut this Friday and more details released on the Chinese stimulus package, it looks like China is propping up its economy further. The US calendar is very light in terms of economic data. No real market-moving data points will be issued on Friday, with only Building Permits and Housing Starts on deck. Instead, look for the (Fed), where no less than three members are set to speak.
Daily digest market movers: Fed speak could fall on deaf ears
US Dollar Index Technical Analysis: First stop for now (DXY) sees the rally train come to a halt, with some better-than-expected Chinese data and measures taken by the Chinese government to support domestic demand. Though this rally might face a small fade, a big reversal does not seem to be in the cards. With the interest rate gap between the US, the Euro and other currencies widening again, the Greenback should at least remain supported towards the in November. A firm resistance ahead is 103.80, which aligns with the 200-day SMA. Above that, there is a small gap before hitting the pivotal level at 103.99 and the 104.00 big figure. Should Trump further lead in the polls, a rapid swing up to 105.00 and 105.53 could be on the cards. On the downside, the 100-day SMA at 103.19 and the pivotal level at 103.18 are now acting as support and should prevent the DXY from falling lower. With the Relative Strength Index in overbought territory, a test on this level looks granted. Further down, the 55-day SMA at 101.85 and the pivotal level at 101.90 should avoid further downside moves. (Click on image to enlarge)US Dollar Index: Daily ChartMore By This Author:US Dollar Turns Flat Ahead Of Important ECB Meeting With All Eyes On Lagarde US Dollar Extends Rally After Trump Promises More Tariffs US Dollar Orbits Around Key Level While Traders Doubt Fed’s Outlook
