USD erases post-PPI losses

The US dollar managed to erase most of the losses which occurred after the publication of the PPI report, which may indicate that markets reacted too optimistically to de facto secondary data. Sharpest pullbacks can be observed on USDJPY and Antipodes pairs.

Following the PPI report the USDJPY pair dropped  to 137.65 which is the lowest level since the end of August 2022, only to quickly rebound by 160 pips. Source: xStation5

GBPUSD pair managed to keep most of today's gain, however buyers have a clear problem with breaking above 1.20 level, which is marked with upper limit of the 1:1 structure, 38.2% Fibonacci retracement of the last downward wave and 200 SMA (red line). Source: xStation5

NZDUSD pair also pulled back sharply after an unsuccessful attempt to break above key resistance at 0.6240. If current sentiment prevails, retest of local lows at 0.6065 cannot be ruled out. Source: xStation5