OctaFX | OctaFX Forex Broker
Open trading account
Back

Buy DXY on dips towards 95.00 – Westpac

FXStreet (Edinburgh) - In the view of strategists at Westpac, pullbacks in the greenback (in terms of DXY) towards the 95.00 area remain a buying opportunity.

Key Quotes

“The global milieu remains toxic for risk taking - key EM anchor currencies such as BRL and CNH remain under heavy pressure, export orders for global trade bellwethers like Taiwan are in freefall (-8.3% y/y vs expectations for -4.7% y/y), the US manufacturing slowdown seems to be gathering pace with the Philly, Empire and Richmond Fed surveys all slipping into negative territory (flagging risks of a sub-50 ISM this week) while corporate malfeasance at one of the largest auto makers in the world threatens to damage German growth prospects”.

“Risk averse markets should keep the USD well supported vs the likes of dollar bloc/EM for some time yet. Beyond that a probable Dec Fed hike - heavily underpriced by markets - should offer more sustained medium term USD support”.

“While US manufacturing looks very soft right here progress on both sides of the Fed’s dual mandate should be apparent by year end. For one there is the seasonal propensity for the US data to beat expectations across the board late in the calendar year while base effects from the fall in energy prices should begin to wash out of the CPI/PCE data. USD index a buy into 95”.

AUD/USD bounces and rises back above 0.7000

AUD/USD managed to erase losses and rose back above 0.7000 as the US dollar extended losses versus commodity currencies.
Read more Previous

USD/CHF continues to consolidate, around 0.9710

USD/CHF is moving sideways in range around 0.9700, on a quiet day for European currencies. Among them, the Swiss franc is the best performer.
Read more Next
Start livechat