US dollar continues to weaken ahead of the North American session as fresh PPI data and recent dovish comments from Fed Vice Chair Lael Brainard and Fed Governor Christopher Waller sparked hopes that policymakers may slow down the pace of interest hikes. The producer price index, which gauges the prices received for final demand products, rose 0.2% over the previous month in October, while analysts expected a 0.4% gain. The report also showed the PPI coming in softer than expected on a year-on-year basis and in its core reading.
As a result stock futures tied to the blue-chip Dow Jones jumped 1% on Tuesday, and those linked to the S&P 500 and Nasdaq rose 1.5% and 2.5%respectively, while greenback weakened sharply against a basket of major currencies, breaking below the 106 mark for the first time in three months. Some of the most pronounced selling activity took place against risk-sensitive Antipodean currencies and British pound.
AUDUSD pair managed to break above major resistance at 0.6700, which is marked with previous price reactions and downward trendline. Next resistance to watch is located at 0.6900. Source: xStation5
US100 bounced off major support at 11700 pts. Source: xStation5
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