Higher than anticipated US payrolls report final Friday and optimism over US-China talks (later right this moment) supported fairness danger sentiments in Asia right this moment. DXY was final round 99 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong word.
Day by day momentum and RSI should not exhibiting a transparent indication
“On FX, the everyday risk-on FX together with AUD and NZD have been higher bid whereas AxJs traded blended. The ~10% USD sell-off because the begin of this yr additionally confirmed some indicators of tentative breather. Particularly, XAU/XAG cross fell sharply as US-China commerce talks helped to partially cut back tariff uncertainty. Day by day momentum and RSI indicators should not exhibiting a transparent indication. Assist at 98.35, 97.90 (2025 low). Resistance at 99.80 (21 DMA), 100.20 (50 DMA).”
“The extra upbeat US payrolls report might doubtlessly be a set off for some USD brief protecting forward of CPI, PPI experiences (Wednesday, Thursday, respectively) and FOMC occasion danger subsequent week. Later right this moment, US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Commerce rep Jamieson Greer will meet the Chinese language delegation, led by Vice Premier He Lifeng for a second spherical of talks in London.”
“Over the weekend, China authorised some functions for rare-earth exports after Trump mentioned that President Xi has agreed to restart the move of minerals and magnets utilizing the supplies. It was additionally reported that Trump instructed Xi that Chinese language college students are welcome to review within the US. We proceed to observe how developments pan out and if this spherical leads nearer to a formalised settlement earlier than the truce expires on 12 August.”
