Summary:
Tuesday: The dollar hit a 3-month low on weak home sales; the Aussie dollar rose to a 4-month high despite a consumption dip.
EBC Forex Snapshot
28 Nov 2023
The dollar was down to a three-month low on Tuesday on weaker-than-expected new home sales data, while the Australian dollar hit its near four-month high despite a contraction in domestic consumption.
New home sales fell 5.6% to a seasonally adjusted annual rate of 679,000 units in October, below the 723,000 units expected by economists polled by Reuters and sending Treasury yields lower.
Traders see a chance of about 25% that the Fed could begin cutting rates as early as March, while pricing in about a 50-50 chance of easing in May next year, CME's FedWatch Tool shows.
Australian retail sales unexpectedly slipped in October as consumers cut back on everything but food, though analysts believe many were merely saving some money to splurge on Black Friday sales due later this month.
| Citi (as of 20 Nov) | HSBC (as of 28 Nov) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0517 | 1.0945 | 1.0750 | 1.1060 |
| GBP/USD | 1.2037 | 1.2525 | 1.2325 | 1.2785 |
| USD/CHF | 0.8745 | 0.9338 | 0.8712 | 0.8972 |
| AUD/USD | 0.6340 | 0.6520 | 0.6420 | 0.6708 |
| USD/CAD | 1.3640 | 1.3899 | 1.3519 | 1.3782 |
| USD/JPY | 149.21 | 151.91 | 146.57 | 151.35 |
The green numbers in the table indicate an increase in data, the red numbers indicate a decrease in data, and the black numbers indicate that the data remains unchanged.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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