DXY index is trading higher at around 82.12 levels - ICICI Bank : Treasury Research

The DXY index is trading higher in the early trade today at around 82.12 levels, after falling for the last three trading sessions by a cumulative 1.1%. Weak manufacturing data from China released this morning added to growth concerns and aided the safe haven demand for the Dollar. Some pullback has also been witnessed from the recent losses. Meanwhile, the Dollar remained under pressure yesterday as weak economic data from US releases continued to aid speculation over continuation of current scale of asset purchases by the Fed. Market focus today would be on the Market PMI and new home sales data for further cues. Technically, intraday trend for the DXY is bearish with support and resistance at 82.00 and 82.40 respectively.

EUR/USD: The Euro is trading lower at around 1.3208 compared to yesterday's close of 1.3223 as weak manufacturing data from China weighed on risk sentiment. Earlier, the Euro had gained around 0.3% yesterday as weak data prints from US led to paring of bets on early QE tapering. Better-than-expected Eurozone consumer confidence data print also aided the currency yesterday. Meanwhile, Portugal continues to preserve its fragile political stability and yesterday announced a Government reshuffle, with a new minister for the economy. Intraday, markets will look forward to manufacturing PMI data for further cues. The intraday trend for the Euro is bullish, with support and resistance at 1.3180 and 1.3241 respectively.

GBP/USD: The British Pound is trading slightly lower today morning at around 1.5359 compared to yesterday's close of 1.5368, albeit holding on to most of the recent gains. The Pound had gained in the last six trading sessions ahead of Q2 GDP data due tomorrow, amidst speculation that the report would show a sustained recovery. The intra day trend for the GBP/USD cross is bullish with support and resistance at 1.5320 and 1.5375 respectively.

USD/JPY: The Japanese Yen is currently trading weaker around 99.68 levels, as against yesterday's close of 99.68 on the back of Dollar strength this morning. Expectation on continued aggressive monetary easing in Japan after Prime Minister Abe's coalition party won majority in the weekend upper house vote has also been weighing on the currency. The Yen has come under further pressure amidst some improvement witnessed in risk sentiment over the last few sessions and gains in global stocks. Technically, the intra day trend for USD/JPY cross is ranged with support at 99.60 and resistance at 100.00.

USD/CHF: USD/CHF pair is currently trading higher at 0.9360 as compared to the previous close of 0.9349 tracking strength in the US Dollar. The losses witnessed in the Franc against the Dollar have been in tandem with the other currency pairs. The currency has also remained under pressure after data showed that Swiss investment in foreign assets increased to the highest level since December 2007 in May. Meanwhile, the EUR/CHF pair is trading little changed at 1.2360 levels. Technically, USD/CHF is expected to trade bearish with support at 0.9340 and resistance at 0.9398.

AUD/USD: The Australian Dollar is trading lower at around 0.9261 levels as against yesterday's close of 0.9296 as weak manufacturing data from China, Australia's largest trade partner weighed on the outlook for the country's exports. The currency also remained under pressure amidst rising speculation over a rate cut by the RBA in the August meeting following a decline in Q2 CPI inflation. Technically, we expect AUD/USD to trade ranged with support at 0.9226 and resistance at 0.9280.

USD/CAD: The Canadian Dollar is trading weaker, around 1.0309 levels as compared to previous close of 1.0287 amidst strength in the Dollar and decline in crude oil prices this morning. However, losses were limited as better than expected retail sales print, showing 1.9% MoM growth in May aided optimism over recovery in consumer spending in Canada. Technically, we expect USD/CAD to trade bearish with support at 1.0274 and resistance at 1.0337.

Source : Equity Bulls

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