In opinion of Richard Franulovich, Strategist at Westpac, dips towards the 96.50/96.00 area represent buying opportunities.
Key Quotes
“The USD has gone largely unrewarded for a material shift in a wide swathe of data including core CPI/PCE, retail sales, IP and payrolls”.
“The improved tenor of the data has arguably boosted risk appetite more so, at least so far, indirectly tarnishing the USD”.
“With that shift in the Fed’s tenor the USD should begin to benefit from a likely continued trend of more positive data surprises, our US data surprise index still some distance from hitting levels that warn a reversal is imminent”.
“DXY a buy into 96.0-96.5 if seen”.
(Market News Provided by FXstreet)