16 Feb 2016
USD finds resistance at 97.80 – Westpac
Strategists at Westpac have emphasized the strong resistance area facing the greenback around 97.80.
Key Quotes
“We have been running with the view that stronger US data should eventually manifest itself in a stronger US$”.
“While it is early days, that certainly seemed to be the case in last week’s crop of US data. Of the 7 pieces of US data released last week captured by our US surprise index, 5 (or 71%) beat forecasts. That’s the best outcome we have seen back to July last year”.
“Consistent with the above, the Atlanta Fed revised up its forecast for Q1 GDP growth to 2.7% on Friday, up from 2.5 percent on February 9”.
“The USD might also draw some support from Fed commentary this week – various speakers will underscore global and market volatility concerns but will also emphasise a “gradual” path for hikes”.
“Momentum picking up in the short term but several layers of resistance between here and 97.80. Medium term picture confirms more resistance at 97.80 but no sign that DXY will break through or even trade up to there”.
Key Quotes
“We have been running with the view that stronger US data should eventually manifest itself in a stronger US$”.
“While it is early days, that certainly seemed to be the case in last week’s crop of US data. Of the 7 pieces of US data released last week captured by our US surprise index, 5 (or 71%) beat forecasts. That’s the best outcome we have seen back to July last year”.
“Consistent with the above, the Atlanta Fed revised up its forecast for Q1 GDP growth to 2.7% on Friday, up from 2.5 percent on February 9”.
“The USD might also draw some support from Fed commentary this week – various speakers will underscore global and market volatility concerns but will also emphasise a “gradual” path for hikes”.
“Momentum picking up in the short term but several layers of resistance between here and 97.80. Medium term picture confirms more resistance at 97.80 but no sign that DXY will break through or even trade up to there”.