Summary:
The dollar drifted lower in the Asia session on Tuesday as traders turned their focus on US inflation data and a slew of central bank meetings ahead.
EBC Forex Snapshot
12 Dec 2023
The dollar drifted lower in the Asia session on Tuesday as traders turned their focus on US inflation data and a slew of central bank meetings ahead.
Economists polled by Reuters expect headline inflation to have been flat for November, and core inflation to keep steady at an annual pace of 4%.
Markets see a roughly 50% chance the first Fed rate cut will come as soon as March, according to the CME's Fedwatch tool.
Higher iron ore prices and a rebound in Chinese property shares helped push the Australian dollar higher. The commodity climbed by almost two-fifths since May, driven by a surge in Chinese steel production
| Citi (as of 1 Dec) | HSBC (as of 11 Dec) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0852 | 1.102 | 1.0650 | 1.0945 |
| GBP/USD | 1.2347 | 1.2746 | 1.2417 | 1.2704 |
| USD/CHF | 0.8684 | 0.8957 | 0.8682 | 0.8892 |
| AUD/USD | 0.6522 | 0.6750 | 0.6501 | 0.6671 |
| USD/CAD | 1.3417 | 1.3695 | 1.3454 | 1.3742 |
| USD/JPY | 146.70 | 151.91 | 141.17 | 149.21 |
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.
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The dollar held gains and rose slightly in Asia Monday as Japan's holiday cut liquidity, focusing attention on China's disappointing stimulus.
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