The dollar looked set to extend its hot streak in the initial reaction to the US CPI data yesterday before it all turned around in a reversal rally for equities. The slightly better risk mood early on is keeping the antipodeans slightly ahead for now but overall, there are mixed tones in the major currencies space with the euro, pound and yen all lower against the dollar.
The pound is a notable laggard as cable is down 0.6% on the day to 1.1255. There is some near-term resistance around 1.1350-60 that is pinning the latest bounce from yesterday - which was also helped by talk of a budget U-turn in the UK.
Buyers are still in near-term control as price action holds above both the key hourly moving averages with a tilt below 1.1200 and the 200-hour moving average (blue line) at 1.1192 only giving sellers back some form of control. Key resistance still stands closer to 1.1500 as outlined by the highs last week.
Elsewhere, EUR/USD is down 0.1% to 0.9760 while USD/JPY is up 0.2% to 147.50-60 at the moment. The latter remains a point of interest after what seemed like intervention by Japanese authorities yesterday near 147.65. We're holding just under that as traders remain a fair bit more cautious in running up against that level again for now.
AUD/USD is up 0.3% to 0.6315 but off earlier highs of 0.6345 as risk tones are also looking a bit more shaky in the past hour. NZD/USD is also up 0.3% to 0.5650 but down from 0.5680 earlier in the day.
