Various factors have emerged in favor of a stronger dollar, such as unexpectedly strong U.S. employment data from last week, Fed Chair Powell’s denial of market expectations for a rate cut in March, better-than-expected ISM data, and the OECD’s interim world economic outlook highlighting the strength of the U.S. economy.
Amidst these developments, the Australian dollar has risen as the Reserve Bank of Australia maintained a more hawkish stance than expected. Additionally, expectations of China taking serious measures to support its stock market have led to gains in Hong Kong and Shanghai stocks and a trend of selling the dollar.
The question now is whether the dollar will face further adjustments in the global markets. Will it return to its uptrend after this initial correction? Monitoring the strength and weaknesses of these movements will be important.
In terms of upcoming events, speeches from U.S. financial authorities are scheduled during the New York session. Speeches by officials such as Mester of the Cleveland Fed, Kashkari of the Minneapolis Fed, and Collins of the Boston Fed are on the agenda. In particular, Collins’ speech on the labor market will be closely watched, given the impact of the recent U.S. employment data.
Yesterday, we followed the USD buying trend after the release of the U.S. ISM Non-Manufacturing PMI data. However, the price movement seemed relatively weak. The USDJPY long position was already stopped out, and currently, I only have a short position on NZDUSD.”