<p style=““ class=“text-align-justify“>The dollar is sitting a little higher against most of the major currencies bloc today, while keeping a modest advance against the antipodeans in particular. As mentioned earlier, the latter move is a reflection of the dollar’s gains against Chinese yuan today – after having seen China disappoint with their GDP target for the year.</p><p style=““ class=“text-align-justify“>The counter flows seem to be enough to keep the dollar afloat for now, despite the fact that <a target=“_blank“ href=“https://www.forexlive.com/news/bond-yields-continue-to-hold-slightly-lower-on-the-day-20230306/“ target=“_blank“ rel=“follow“>bond yields are pushing lower</a>. 10-year Treasury yields are down 5 bps now to 3.912% but USD/JPY is instead up 0.1% to 136.00 currently. The dollar’s gains are more evident against the aussie and kiwi, with the latter being pressed towards key technical levels again:</p><p style=““ class=“text-align-justify“>NZD/USD is closing in on its 200-day moving average (blue line), which will act as a first line of defense before the 38.2 Fib retracement level of the swing higher since October last year, seen at 0.6145 next.</p><p style=““ class=“text-align-justify“>As much as the dollar is holding up, there’s still plenty of landmines to navigate through on the week with key central bank policy decisions in focus alongside Fed chair Powell’s testimony to Congress (tomorrow and Wednesday). That will keep markets on edge but if anything else, just be wary that often times it is the case that the bond market is always right and the dollar (and equities) will have to play catch up later on.</p>
This article was written by Justin Low at www.forexlive.com.
