USD/CNH can continue to rebound – UOB Group

FXStreet Insights Team FXStreet

The US Dollar (USD) could continue to rebound; there does not appear to be enough momentum for it to threaten the resistance at 7.0350. In the longer run, downward momentum is beginning to slow; if USD breaches 7.0350, it would suggest that it could trade in a range for a period, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Downward momentum is beginning to slow

24-HOUR VIEW: “We expected USD to edge lower yesterday. We were incorrect, as instead of edging lower, USD rebounded strongly to 7.0120. The strong rebound has resulted in an increase in momentum. Today, USD could continue to rebound, but it does not appear to have enough momentum to threaten the strong resistance at 7.0350. Note that there is another resistance level at 7.0240. Support is at 6.9980, a breach of 6.9850 would indicate that the current upward pressure has eased.”

1-3 WEEKS VIEW: “We have held a negative USD view for more than a week now (as annotated in the chart below). In our most recent narrative from last Friday (27 Sep, spot at 6.9810), we indicated that ‘the recent price action continues to suggest USD weakness, albeit likely at a slower pace.’ We added, ‘the levels to monitor are 6.9400 and 6.9200, and a breach of 7.0350 (‘strong resistance’ level) would mean that USD is not weakening further.’ USD has not been able to make any further headway on the downside. Downward momentum is beginning to slow, and if it breaches 7.0350 (no change in ‘strong resistance’ level), it would suggest that it could trade in a range for a period.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD jumps to 0.7050, fresh one-month top after hot Australian CPI

AUD/USD attracts buyers for the second straight day on Wednesday, rising to a fresh high since September 23 during the Asian session. A hot Australian CPI print reaffirmed bets for an imminent RBA rate hike in November and boosted the Australian Dollar. Meanwhile, the US Dollar pauses after a three-day rally to a near two-week high ahead of the crucial FOMC rate decision, lending additional support to the currency pair.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold drops as oil price rebounds, Fed’s policy eyed

Gold slips 0.3% to near $4,050 in the Asian trade on Wednesday, as oil prices bounce back after a two-day correction. The precious metal is expected to face high volatility as the Federal Reserve is scheduled to announce the monetary policy later in the day at 18:00 GMT.

Bitcoin, Ethereum and XRP recover as Big Tech earnings take center stage

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) extend their recovery on Wednesday as investors turn their attention to major technology companies' earnings reports. Microsoft and Alphabet are due to report their Q3 earnings on Wednesday, followed by Amazon on Thursday.

FOMC outlook: Why keeping rates unchanged might not be enough

Tomorrow's FOMC meeting could be quite interesting, even if the Federal Reserve decides to leave interest rates unchanged. According to the latest market expectations, there is currently a 92.8% probability that rates will remain at 3.75–4.00%, while the probability of another 25 basis point increase stands at just 7.2%.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.