Greenback nears 2020 high on supportive.......>

FOREX: Greenback nears 2020 high on supportive data

- The greenback was lent some support following stronger-than-expected ISM

non-manufacturing PMI, November factory orders and trade balance numbers. While

the manufacturing ISM last week disappointed, Tuesday's release bucked the

trend, showing the Q3 services sector weakness may have been shortlived. Similar

signs were seen in factory orders data and trade balance, which showed the

US-China trade gap shrank to a six year low.

- Dollar strength kept most major pairs under pressure, most evident in the AUD,

which sank for a fifth consecutive session as traders continue to ratchet higher

the implied probability that the RBA will cut rates as soon as February. AUD/USD

cracked through support at both the 200- and 50-dmas Tuesday. Elsewhere, implied

vols inched lower for most DMFX as the recent oil price rally stalled. There was

very little sign of further escalation between the US/Iran, prompting a >1%

retreat in WTI and Brent crude futures.

- German factory orders and US ADP employment change take focus Wednesday as

well as speeches from ECB's de Guindos and Fed's Brainard.