US Dollar extends continuing-turndown, centered on keeping a multi-day bearish leg alive, USD moved-up providing fresh five-week lows. The US Dollar Index (DXY) has dropped below the key 99.00 support level. This decline is revealing in how painful and awful this currency has performed across the board. This drop came despite the heightened focus on bad economic data, especially this Friday’s new US jobs report.
This was evident on Wednesday, as the AUD/USD currency pair showed surprising strength, moving up towards the all-important 0.6600 level. The Australian dollar keeps getting stronger. This positive trajectory is a sign that the tide of investor sentiment may be turning towards currencies pegged to commodities.
The USD/JPY currency pair displayed erratic price action during the day. Even the very weak USD/JPY, whose moves during the day were marked by failure above the notable 156.00 resistance level. This frenetic action underscores the persistent disarray in the market, wrangling with whether the US dollar is too strong or too weak against the Japanese yen.
In the second interesting development, the GBP/USD exchange rate broke above the 1.3300 psychological level last week. The duo’s recent performance turned heads by coming within striking distance of its important 200-day simple moving average (SMA). This movement foreshadows the possibility of even greater changes in either direction.
The EUR/USD currency cross scored massive in-wins on Wednesday, rising to fresh two-month highs. The pair turned at the critical 1.1680 level of importance. They immediately directed their attention back toward key psychological 1.1700 figure, a sign that investors are still deeply bullish.
West Texas Intermediate (WTI) prices in the commodities market recovered after their slump on Tuesday. They are now actually approaching that critical $60.00 mark per barrel. This rebound is occurring as market participants are still trying to get their arms around global supply and demand trends.
Gold prices posted considerable Wednesday on Thursday too, rising beyond the $4,200 barrier per troy ounce. This uptick is indicative of continued investor demand for safe-haven assets during a time of volatility in the equities markets.