In view of strategists at Westpac, occasional drops towards the 96-95 band could be considered buying opportunities.
Key Quotes
“2016 Fed hike odds have risen to a more reasonable +30bp by December but still remain on the undercooked side vs. our base case (+50bp, though our official call is +75bp)”.
“Soft retail sales aside, near term data trends should continue to pressure those odds higher, the strong read for March Fed Empire new orders signalling that the fever in manufacturing may be breaking and our US data surprise index still some distance from hitting peak levels that warn optimism is getting ahead of itself. USD Index a buy into 95-96”.
“In the short term, looks like DXY has seen the low for now, and medium term charts suggests the same. Cautious however as momentum has not yet turned up”.
(Market News Provided by FXstreet)