As mentioned early yesterday, the most important development for the dollar was that it was pushed to the limit but narrowly held its ground before falling off the cliff's edge. That led to a more meaningful rebound with higher bond yields helping with the move in US trading.
For now, major currencies are little changed in Asia Pacific trading with narrow ranges still prevailing. A less than 10 pips range for certain dollar pairs is still leaving a lot to be desired as we get stuck into the new day:
Things will definitely pick up later in the day, especially with some interesting happenings on the charts. USD/JPY is trading up to one-month highs after yesterday's break higher, targeting the 135.00 mark next. Meanwhile, EUR/USD is seeing the failure to hold a weekly close above 1.1000 result in a further downside push:
Of note, price is now slipping back under the 100-week moving average (red line) at 1.0935 and the 50.0 Fib retracement level at 1.0942 on the day.
Adding to that, the hourly chart also reflects a drop back below both the 100 and 200-hour moving averages, which indicates the near-term momentum is now with sellers. That is a similar development seen in GBP/USD as well.
