22.10.2019: USD firm despite its weakness against commodity currencies

22.10.2019: USD firm despite its weakness against commodity currencies


In the Asian session, the US dollar remained steady against its major rivals. At the same time, commodity currencies, including the Australian dollar, are gaining ground amid hopes for progress in trade talks between the US and China. The US dollar index, which tracks the greenback’s strength against a basket of six currencies, was trading sideways near the level of 97.30. The dollar/yen pair made a timid attempt to rise to multi-day highs in the morning but eventually failed. Now it is trading near its intraday low above 108.50. What is more, the US dollar holds firm after the rising yields of US Treasuries. The Japanese yen, on the contrary, dipped amid US-China trade optimism. Market participants hope that the parties will sign a trade agreement in mid-November in Chile during the Asia-Pacific Economic Cooperation Summit. Donald Trump’s comments on a trade deal are also encouraging. He said that the parties are making significant headway. The greenback is losing momentum versus the Austrian dollar which is seen as a barometer of risk sentiment in the Asia-Pacific region. The AUD/USD pair is consolidating near its September highs at 0.6860-0.6880. The economic calendar for today lacks any significant events. Financial markets in Japan are closed. Eurozone and the United States will not publish any crucial economic data. So, risk sentiment and the US dollar’s movements are going to be the main market drivers for today.

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