Dollar loses some ground as stocks nudge higher

Technical Analysis

Author: Justin Low | usd

The dollar slips to its lowest levels on the day

The more upbeat German manufacturing PMI data earlier is helping to give regional stocks a broader lift and in turn that is translating to some weakness in the dollar now.

This also comes as the euro is nudging a little higher and buyers have seized back near-term control in the EUR/USD pair, now trading at a session high of 1.1835.

European equities are now posting gains of close to 1% across the board while US futures have turned around a slight loss to gain by ~0.2% on the session.

Elsewhere, cable is now up to a session high of 1.3100 with USD/JPY also seen lower at 104.60. For now, keep a watchful eye on AUD/USD as it retests its earlier high today:

AUD/USD H1 23-10
The region around 0.7137-39 helped to stall gains earlier but buyers are keeping a more bullish bias - above the 200-hour MA (blue line) - and a firm break above that and the 50.0 retracement level @ 0.7132 could pave the way for a push back towards 0.7200.

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