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USD Edging Off 2021 Highs

FOREX
  • The greenback is edging lower after Monday's strong session put the USD at the best levels since late November.
  • At the top end of the G10 table so far Tuesday is NOK, which is pressuring EUR/NOK to new cycle lows and narrowing the gap with the February 2020 support at 10.00. Strong oil prices continue to contribute to the currency's outperformance, but markets also keep an eye on the upcoming Norges Bank policy decision, at which the bank may steepen their rate path projections to indicate a sooner-than-expected first post-COVID rate hike.
  • AUD and NZD are chewing through Monday's losses, with AUD?USD nearing the week's best levels at $0.7722. A break above opens 50-dma resistance at $0.7736.
  • There are no major data releases due Tuesday, with few central bank speakers on the slate either. RBA governor Lowe speaks after the close from Sydney.

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