. Dollar Up, but Small Signs of Economic Recovery Limits Gains

Dollar Up, but Small Signs of Economic Recovery Limits Gains

24 May 2022

AUD/USD is trading down 0.42% at 0.7076       

The dollar was up on Tuesday morning in Asia. The safe-haven asset clawed back some of its overnight losses, and the yen also strengthened, as U.S. stock futures fell following a profit warning from Snapchat.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.15% to 102.06 by 12:10 AM ET (4:10 AM GMT).

The USD/JPY pair edged down 0.13% to 127.70, with the Japanese manufacturing purchasing managers’ index (PMI) for May 2022 at 53.2. Japan also released the services PMI for that month.

The AUD/USD pair was down 0.32% to 0.7084 and the NZD/USD pair was down 0.46% to 0.6437. New Zealand’s core retail sales grew 0% quarter-on-quarter in the first quarter of 2022, while retail sales contracted 0.5% quarter-on-quarter.

The USD/CNY pair edged up 0.12% to 6.6585 while the GBP/USD pair edged down 0.20% to 1.2563.

The U.S. currency clawed back its losses after Monday’s 0.85% fall, which took it further from the nearly two-decade peak above 105 hit during the middle of the month. The dollar did, however, slip against the Japanese yen.

Across the Atlantic, the euro retreated 0.21% to $1.0672, although it barely dented Monday’s 1.17% surge, after European Central Bank President Christine Lagarde said policymakers were likely to lift the euro area deposit rate out of negative territory by the end of September 2022.

On technical fronts AUD/USD RSI stood at 62.99 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : AUD/USD – BUY: 0.7077, TARGET: 0.7116, STOP LOSS : 0.7044