Risk-on or risk-off, the dollar is failing to find much confidence in this market. The lack of faith in the dollar continues to underscore a confidence issue and lack of stability. The latter in particular is a concern, with bigger funds rotating out of US assets amid Trump’s policy incoherence. The greenback continues to struggle as such, and is falling again to start the new week.
It might be a holiday in the UK and US but that’s not stopping the FX market all too much. The dollar is mostly down alongside the yen as risk flows are looking for a rebound.
That comes on the back of Trump delaying the 50% tariffs on the EU from 1 June to 9 July now.
While the dollar is also marked down against the likes of the euro and pound, AUD/USD is one chart to keep an eye out for.
The pair has been huffing and puffing to try and break above 0.6500 multiple times already this month. But it looks like buyers finally are finding enough conviction to try and pursue that.
That is putting price at its highest since November last year with some minor resistance seen closer around 0.6550. However, the break above 0.6500 itself is a crucial one especially if held into the daily and weekly close in particular. The latter is of major interest with the 100-week moving average also lurking at 0.6513 currently. So, that’s a key level for buyers to sustain further upside potential going into June.
The only concern is month-end flows as we look to the days ahead. I’m not finding any notes yet on what suggestions there are going into this month-end though
