May 29, 2024 13:58 GMT
Greenback Remains Underpinned By Sliding Equities, Weighs on EM FX
USD
- The extension lower for major equity indices and higher long-end treasury yields continue to underpin the greenback bid on Wednesday. With risk sentiment notably dented, emerging market currencies are notably feeling the pinch, and the likes of MXN, CLP, ZAR and HUF are among the worst performers globally.
- Across G10, the dollar index trades in a relatively narrow range in comparison. However, AUD, NZD and CAD have all slipped to session lows in recent trade.
- Underperformance for the AUD comes following the stronger-than-expected CPI data overnight and short-term positioning dynamics may be modestly exacerbating the move towards the lowest levels of the week. On the downside, support to watch lies at 0.6584, the 50-day EMA.
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