Today's weakness of the US dollar against all developed market currencies is a result of a lowering of Treasury yields throughout the Asian session. The actions reversed the day before's gains. For now, the benchmark 10-year note is maintaining a yield above 4%.
In addition, after strong PMI results from China and Japan, some optimistic risk sentiment surfaced. Above expectations of 48.5, the Caixin Chinese manufacturing PMI was 49.2 and the Jibun Bank Japanese manufacturing PMI was 50.7.
One of the rare currencies to lose value when compared to the "great dollar" is the Chinese Yuan. The USD/CNY exchange rate is at its lowest point since the beginning of 2008, reaching 7.3270. That is far above the low of 6.3035 in March.
The Japanese Ministry of Finance (MoF) disclosed that currency intervention costs totaled 6.3 trillion yen (42.5 billion dollars) in October.
The best-performing major currency thus far has been the Kiwi Dollar, whose September building approvals statistics indicated a gain of 3.8% month-over-month.
After the RBA raised its cash rate goal by 25 basis points (bps) to 2.85%, the AUD/USD pair made a move toward 0.6450 before retreating. The saying "buy the rumor, sell the fact" seems to apply here.
All APAC stocks are higher, with Hong Kong's Hang Seng Index (HSI) topping the pack after briefly rising by more than 4%. After yesterday's falls, US futures are indicating a better start to their cash session.
According to US Vice President Joe Biden, record oil company profits are a result of the war, and producers that don't reinvest their revenues to boost output risk paying an additional tax.
The price of crude oil increased little, with the WTI futures contract crossing US$ 87 barrel and the Brent contract crossing US$ 93.49 bbl.
Today, additional PMI statistics are expected from the US, UK, Canada, and Switzerland. The latter will also release comparable ISM data. In anticipation of the Fed's rate announcement on Wednesday, the market remains nervous.
After rising over the 55-day simple moving average, the US Dollar index is still in an ascending trend channel and may be starting to move again in a bullish direction (SMA).
The 100-day SMA, which is currently crossing at 108.61 and forms the lower bound of the rising channel, may act as support.
The most recent low and the break points at 109.50 and 109.30, respectively, may act as support just above that level.
Resistance on the topside might be at the break point of 111.75 or higher yet, at the prior peaks of 113.90 and 114.76.
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