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Greenback Backtrack Persists, Tips AUD/USD North of Resistance

USD
  • Backtrack in the USD Index persists in recent trade, with the London close seeing new lows for the greenback (USD Index now narrowing in on the 104.053 support - the 38.2% retracement for the upleg off March lows).
  • Greenback move continues to favour growth-proxies, commodity currencies and emerging markets, helping AUD/USD top the 50-day EMA on the latest corrective rally.
  • Bulk of the move triggered by that soft ISM print that's helped reverse some of the pricing-out of rate cuts after Monday, and leaves cumulative Fed cuts of ~69bps priced for the December 2024 meeting
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  • Backtrack in the USD Index persists in recent trade, with the London close seeing new lows for the greenback (USD Index now narrowing in on the 104.053 support - the 38.2% retracement for the upleg off March lows).
  • Greenback move continues to favour growth-proxies, commodity currencies and emerging markets, helping AUD/USD top the 50-day EMA on the latest corrective rally.
  • Bulk of the move triggered by that soft ISM print that's helped reverse some of the pricing-out of rate cuts after Monday, and leaves cumulative Fed cuts of ~69bps priced for the December 2024 meeting