U.S. Dollar Falls On Improved Risk Sentiment
January 04 2021 - 2:00AM
RTTF2
The U.S. dollar depreciated against its major counterparts in
the European session on Monday, as optimism about the roll out of
coronavirus vaccines fueled hopes for global economic recovery.
The U.K. has began rolling out the coronavirus vaccine developed
by AstraZeneca and the University of Oxford, with an 82-year-old
Oxford-born dialysis patient becoming the first to receive the
inoculation.
Strong PMI reports from the euro area and the U.K. further
underpinned sentiment.
Investors await runoff elections in Georgia on Tuesday to
determine which party takes control of the Senate.
The outcome will be crucial for the incoming Democratic
President Joe Biden to push forward his legislative agenda.
The minutes from the Federal Reserve's December meeting is due
on Wednesday that could offer fresh guidance on its asset
purchases.
ISM manufacturing and service PMI figures, ADP private sector
employment and nonfarm payrolls report are likely to grab attention
during the week.
The greenback weakened to near a 10-month low of 102.71 against
the yen and a 6-year low of 0.8790 against the franc, after
climbing to 103.32 and 0.8846, respectively in early deals. The
currency is likely to find support around 100.00 against the yen
and 0.86 against the franc.
The greenback fell to 1.2301 against the euro, from a high of
1.2228 seen at 5:00 pm ET. Next key support for the greenback is
seen around the 1.26 area.
Final data from IHS Markit showed that Eurozone manufacturing
conditions improved to its highest level since May 2018 driven by
stronger rises in output and new orders.
The manufacturing Purchasing Managers' Index rose to 55.2 in
December from 53.8 in November. The reading was below the flash
estimate of 55.5.
The U.S. currency dipped to near a 3-year low of 1.2665 against
the loonie, following a high of 1.2736 set at 7:30 pm ET. Should
the greenback drops further, it may face support around the 1.22
level.
The greenback reached as low as 0.7741 against the aussie and
0.7231 against the kiwi, down from its previous high of 0.7682 and
a 4-day high of 0.7181, respectively. The greenback is poised to
challenge support around 0.81 against the aussie and 0.74 against
the kiwi.
The greenback remained lower against the pound, at near a 3-year
low of 1.3704. The greenback is seen finding support around the
1.42 level.
U.S. construction spending for November will be out in the New
York session.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Mar 2024 to Apr 2024
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Apr 2023 to Apr 2024