Today on Tuesday (July 5th), the dollar and yen opened at 135.66 and closed at 135.69 yesterday. So far, the highest has hit 136.36 and the lowest has been 135.50. Temporarily reported 136.16, an increase of 0.34%. The us dollar was temporarily reported at 105.14, a decrease of 0.04%; the Canadian dollar was temporarily reported at 0.7779, an increase of 0.11%.
In early Asian trading on July 5, Beijing time, the US dollar index fell slightly and is currently trading around 105.10. Fears of a global recession have kept the dollar higher, even as markets have tempered expectations for higher U.S. interest rates. Markets are now pricing in about an 85% chance of another 75 basis point rate hike by the Fed this month, with rates expected to hit 3.25% to 3.5% by the end of the year and a rate cut in 2023.
The U.S. stock market was closed for the U.S. holiday on Monday, and the overall sentiment of the Asian and European stock markets was positive. In addition, the U.S. announced that it may finalize the tariff reduction this week. The safe-haven currency , the Japanese yen, weakened across the board. Among the risk currencies, the Australian dollar raised interest rates by 50 in the Reserve Bank of Australia. The basis point is expected to support the lead, but the New Zealand dollar converged on the rise of the epidemic in New Zealand. European currencies fluctuated in a limited range and remained within a narrow range around recent lows. gold fluctuated just over $10 above 1800.
Changes in market sentiment will be worthy of attention as interest rate hike expectations fail. If market sentiment improves, it will drive safe-haven outflows from the U.S. dollar in favor of risk assets, and vice versa. The Reserve Bank of Australia is expected to raise interest rates for the second time in a row by 50 basis points, the first time in history. If sentiment in Asian markets is good, the RBA’s rate hike is expected to add to the AUD’s further recovery.
The daily chart stabilized and rebounded at MA20, and the stochastic indicator was suppressed by the downtrend line. Be cautious to see further upside. The 4-hour chart rebounded at the MA100 line, and the current upward momentum remains intact. Hourly chart oscillated upward and broke 136.00, still bullish. It is recommended to maintain long positions above 136.00, stop loss at 135.70, break above 136.45 and see 136.80 further.
Support: 136.00 135.70 135.45
Resistance: 136.45 136.80 137.00